WASHINGTON, Aug. 13 (Xinhua) -- U.S. inflation moderated in July but remained elevated, according to official data released Wednesday.
The consumer price index rose 0.1 percent month on month and 3.4 percent from a year earlier, according to the U.S. Bureau of Labor Statistics.
While the monthly increase was modest, inflation has continued to weigh on consumers, with food, housing and other essential costs significantly higher than before the recent inflationary period. Since 2019, food prices have risen 30 percent and home-buying costs are up 60 percent, according to calculations.
"Wage gains will not exceed the inflation rate, leaving real income for most workers flat for 2026," said Gary Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics.
Hufbauer told Xinhua, "I think what you see today is what you will get for the rest of 2026."
Food and shelter prices each rose 0.1 percent in July, with shelter accounting for two-thirds of the overall monthly increase. New vehicle prices rose 0.1 percent, while used autos and trucks climbed 0.4 percent. Medical care costs increased 0.4 percent.
Inflation could accelerate further if oil prices rise because of the Iran war, economists said.
"There is definitely more upside risk than downside. That doesn't mean explosive inflation, but if oil prices creep higher, we could be looking at the high 3.0s by the end of the year," said Dean Baker, a macroeconomist and co-founder of the Center for Economic and Policy Research.
The Federal Open Market Committee will have until September to factor the latest inflation data into its deliberations over interest rates.
Brookings Institution Senior Fellow Darrell West told Xinhua: "Inflation is outstripping wage gains and people are having difficulty paying their bills. Many feel they are falling behind and not able to keep up with the cost of food, gas, and healthcare."
Clay Ramsay, a researcher at the Center for International and Security Studies at the University of Maryland, said that "workers are, at best, just holding on to their buying power." ■