Consumer inflation in the United States remained unchanged in July, holding at 2.7% year-on-year, according to data released Tuesday by the Department of Labour.
However, underlying price pressures intensified, driven in part by the impact of President Donald Trump’s broad tariffs on the economy.
The stability in the headline consumer price index (CPI) matched June’s figure, though analysts had anticipated a slightly higher rate of 2.8%, based on a median forecast from Dow Jones Newswires and The Wall Street Journal.
Concerns over data reliability are mounting, with central bank officials closely assessing the potential effects of Trump’s new trade levies introduced this year. Economists are also watching for signs of a broader slowdown, particularly after the July jobs report pointed to weakness in the labor market.
While energy and gasoline prices declined during the month, shelter costs continued to climb. Excluding the often-volatile food and energy categories, “core” CPI rose 0.3% on a month-to-month basis, compared to a 0.2% increase in June.
A year earlier, core inflation had risen 3.1% annually, showing a pick-up in pace. In July, indexes showing increases included medical care, airline fares, and household furnishings, according to the report.
