US Inflation Holds at 2.7% in July Amid Tariff Pressures

U.S. consumer prices rose 2.7% annually in July, matching June's rate and slightly below economists' expectations, signaling a stabilization of inflation. On a monthly basis, prices increased by 0.2%, driven primarily by a 0.2% rise in housing costs, while energy prices declined 1.1%. Core inflation, which excludes volatile food and energy prices and is closely monitored by the Federal Reserve, rose 0.3% in July, pushing the annual core inflation rate to 3.1%, above market expectations. This underlying inflation acceleration is attributed in part to President Donald Trump's sweeping import tariffs, which have begun to exert a growing impact on consumer goods prices despite retailers initially absorbing some costs. The tariffs include significant duties on Chinese imports, steel, aluminum, and foreign cars, increasing the average U.S. tariff rate substantially since January. These inflation trends come amid a slower labor market, leading to controversy as President Trump criticized the Bureau of Labor Statistics' jobs data and dismissed its former commissioner.