The Latest Personal Finance News for August 2026

Inflation Was Down in June, But Still Elevated vs. Last Year

Consumer prices fell in June for the first time in more than a year. The Bureau of Labor Statistics reported that the consumer price index dropped 0.4% for the month, the largest one-month decline since April 2020. Despite falling inflation, however, the Federal Reserve voted to leave the Federal Funds Rate unchanged at their July 29 meeting.

Falling energy costs did nearly all of the work, with the energy index down 5.7% and gasoline down 9.7% over the month. Core inflation, which leaves out food and energy, was unchanged for the month. Prices overall were still 3.5% higher than a year earlier, down from an annual rate of 4.2% in May but well above the Federal Reserve's 2% target.

Why It Matters

June's cheaper fill-ups gave household budgets a break, but the relief didn't last. Gasoline bottomed near $3.78 a gallon in early July and has climbed three weeks running, reaching $4.00 on July 20, according to the Energy Information Administration. That leaves pump prices 88 cents higher than a year ago.

Behind the reversal is an escalating standoff over the Strait of Hormuz, which carries roughly 20% of the world's energy supplies. The U.S. reimposed a naval blockade of Iranian ports in mid-July, and Iran has since threatened to close other export routes. Fuel prices are unusually hard to predict right now, so consumers should be prepared to absorb another gas price hike if one occurs.

What You Can Do

• Learn more about inflation and how it can impact you.
• Look for the next inflation report on August 12.
• Read up on ways you can fight inflation.
• Look for ways to reduce your risks when borrowing money.

Mortgage Rates Relatively Unchanged Since May

Mortgage rates have gone almost nowhere since May. Freddie Mac's weekly survey put the 30-year fixed-rate mortgage at 6.58% on July 23, just slightly higher than the 6.51% mark two months ago.

Mortgage rates track the 10-year Treasury, and that yield climbs when investors expect inflation to run hot. Since late February, the 10-year Treasury yield has risen by roughly 0.7% to around 4.7%.

Why It Matters

If you've been waiting for rates to drop before you buy, that wait just got longer. Rates haven't really moved since May, and nothing driving them right now points down. Higher mortgage rates mean higher monthly payments and reduced buying power. That can push some buyers out of the market entirely or steer them toward riskier loan products.

Adjustable-rate mortgages (ARMs) can save you money during the initial fixed period, but once that period ends, your rate resets based on market conditions. If rates have climbed in the meantime, your monthly payment could jump significantly.

If you're shopping for a home, shop around for rates and run the numbers carefully before committing to an ARM.

What You Can Do

• Understand how mortgage interest works.
• Determine the right type of mortgage for you.
• Prepare your credit before buying a house.
• Review current average mortgage rates.

Parents Expect to Spend Nearly $900 on Back-to-School Shopping

Families with children in kindergarten through 12th grade reported that they plan to spend an average of $863.86 on back-to-school items this year, up from $858.07 in 2025, according to the annual survey from the National Retail Federation (NRF).

Total K-12 spending is expected to reach a record $43.3 billion. Spending on electronics topped the list at an average of $293.11, followed by clothing and accessories at $250.29, shoes at $174.01 and school supplies at $146.45. College shoppers plan to spend an average of $1,437.79, pushing that category to a record $103.5 billion.

Why It Matters

Spending close to $900 in a few short weeks can make back-to-school shopping hard on a family budget. While a rewards credit card can help, it's only beneficial if you can afford to pay off the balance before interest hits.

You may consider an introductory 0% APR credit card or a buy now, pay later plan as a stopgap, but planning ahead is often the best approach. For example, you may consider setting aside $75 per month in a sinking fund to reach $900 for next year's back-to-school season.

You may also consider starting your shopping earlier in the summer. According to the NRF, 54% of parents took advantage of major sales events in June, like Amazon Prime Day, Walmart Deals and Target Circle Day Deals.

What You Can Do

• Get back-to-school shopping tips to save.
• Learn the difference between a sinking fund and an emergency fund.
• Read up on how intro 0% APR credit cards work.
• Understand the pros and cons of buy now, pay later.

Good Credit Can Contribute to a Healthy Financial Plan

While there are aspects of your financial situation that are outside of your control, building and maintaining good credit scores can help you weather challenges and save money in the long run.

With Experian's free credit monitoring service, you'll get access to your FICO^® Score^Θ and your Experian credit report. With this information in hand, you can gauge your credit health and target areas of your credit profile that you can improve over time. And with real-time alerts whenever your report is updated, you can spot potential issues and fraud and address them quickly.