US inflation remained tame in July, with consumer prices rising 0.2% and the annual rate staying at 2.7%. However, a broader range of products saw increased costs, highlighting the impact of President Donald Trump’s tariffs on consumers.
The core CPI index, which excludes energy and food prices, rose 0.3%, the fastest increase since January, driven by higher tariffs on imported goods. Economists expect inflation to heat up slightly in the coming months as these price increases are passed down the supply chain to consumers.
While some industries, like apparel and footwear, saw limited price hikes, others, such as appliances and outdoor equipment, experienced sharper increases. The US textile industry is also under pressure due to import reliance.
The Federal Reserve’s stance on interest rates remains uncertain, with economists believing that a rate cut in September may be unlikely given concerns about the labor market. The recent jobs report showed tepid job gains, raising questions about the Fed’s ability to address inflation without impacting economic growth.
As the US economy continues to navigate the effects of tariffs and trade policies, policymakers must carefully balance the need to manage inflation with the potential for slower growth and increased costs for consumers.
Source: https://edition.cnn.com/2025/08/12/economy/us-cpi-consumer-inflation-july