The official Bureau of Labor Statistics release on August 12, 2026, confirmed the July 2026 annual CPI inflation rate at exactly 3.4 percent year over year, aligning with consensus forecasts and driving the market-implied probability to 100 percent. This outcome reflects continued moderation in energy prices amid easing effects from prior geopolitical shocks, alongside modest deceleration in shelter costs to 3.2 percent and stable food inflation at 3 percent, with the monthly CPI rising just 0.1 percent. Core inflation also matched expectations at 2.5 percent annually. While the data release eliminates near-term uncertainty, potential revisions in subsequent BLS updates or unexpected shifts in upcoming monthly components could still influence related rate expectations and Treasury yields.