Consumer inflation in the United States remained unchanged in July, official data revealed on Tuesday, but underlying prices rose as President Donald Trump’s sweeping tariffs rippled through the world’s largest economy.
The Department for Labour reported that the consumer price index (CPI) increased by 2.7 per cent in July compared with a year earlier, the same rate as in June. Concerns over the reliability of the data have grown, while central bank officials assess the impact of Trump’s latest levies this year.
Analysts are scrutinising the CPI report for any indications of economic weakness, particularly after July’s government employment figures highlighted fragility in the crucial jobs market.
The inflation figure came in slightly below the 2.8 per cent median forecast from analysts surveyed by Dow Jones Newswires and The Wall Street Journal.
Energy and petrol prices fell during the month, but the cost of housing rose in July.
When excluding the more volatile food and energy components, “core” CPI accelerated by 0.3 per cent month-on-month in July, up from 0.2 per cent in June. On an annual basis, underlying inflation increased by 3.1 per cent, marking a faster pace than before.
Over the month, prices also rose for medical care, airline fares, and household furnishings, the report confirmed.