U.S. consumer inflation was unchanged in July, but underlying price growth quickened as President Donald Trump’s broad tariff measures continued to influence the world’s largest economy, government data showed Tuesday.
The Consumer Price Index (CPI) rose 2.7 percent year-on-year, matching June’s pace, according to the Department of Labor. The figure came in slightly below the 2.8 percent median forecast from analysts surveyed by Dow Jones Newswires and The Wall Street Journal.
Economists are closely watching the CPI data for signs of a slowdown, following last month’s employment report that pointed to weakness in the key U.S. jobs market.
While energy and gasoline prices fell during the month, shelter costs increased. Excluding volatile food and energy prices, the “core” CPI rose 0.3 percent month-on-month in July, up from 0.2 percent in June. On an annual basis, core inflation climbed to 3.1 percent, marking a faster pace than in previous months.
The report also noted price increases in medical care, airline fares, and household furnishings.
The data comes as policymakers weigh the economic impact of the latest U.S. tariffs, with concerns growing over data reliability and the Federal Reserve’s policy direction.
