US Core Inflation Rises July Amid Tariff-Driven Price Pressures

The July consumer price index (CPI) data, to be released by the Bureau of Labor Statistics, is expected to show a rise in inflation, with an anticipated year-over-year increase of 2.8%, up from 2.7% in June. This inflation uptick is partly attributed to President Donald Trump's tariff policies, which economists say are beginning to push up prices on imported goods and everyday items, leading to higher costs for consumers. Despite some firms employing strategies to mitigate the immediate impact, tariff-related costs are increasingly being passed on to consumers, with projections suggesting a continued rise in inflation toward 3.2% or even 4% by year’s end. The inflation report arrives amid concerns about the independence of federal economic data after Trump fired BLS Commissioner Erika McEntarfer, who was accused of data manipulation without evidence. Additionally, the economy shows signs of slowing, with weaker job growth and fears of a potential recession, intensifying scrutiny of the inflation data. Market analysts and the Federal Reserve will closely monitor these trends to guide monetary policy decisions.