The U.S. inflation remained unchanged in July, but President Donald Trump’s sweeping tariffs are starting to lift prices for many goods. The Consumer Price Index rose 0.2% last month, keeping the annual inflation rate at 2.7%, according to the Bureau of Labor Statistics.
Falling gas prices helped offset increases in other categories. However, core CPI, which excludes food and energy, climbed 0.3% from June — the fastest monthly gain since January — pushing the annual core rate to 3.1%, a five-month high.
US inflation didn't rise as much as expected in July despite the rollout of global tariffs that started to make some items more expensive.https://t.co/KWBWrRv50n
— CNN (@CNN) August 12, 2025
Economists warn that tariff costs are filtering through to consumers, with noticeable hikes expected in groceries, online shopping, and household goods. Core goods prices rose 0.2% for the second straight month.
Markets reacted positively to the report, with Dow futures up 0.47%, S&P 500 futures rising 0.45%, and Nasdaq 100 futures gaining 0.5%.
