Consumer inflation in the United States was unchanged in July, data showed Tuesday, but underlying price increases picked up as President Donald Trump’s sweeping tariffs ripple through the world’s biggest economy.
The consumer price index (CPI) rose 2.7 percent from a year ago in July, same as in June, said the Department of Labor, as worries over the reliability of data intensify and central bank officials gauge the effects of Trump’s fresh levies this year.
Analysts are closely monitoring the CPI report in particular for signs of weakening in the United States after the July government employment report recently showed weakness in the key jobs market.
The figure, however, was a touch lower than the 2.8-percent rate expected in a median forecast of analysts surveyed by Dow Jones Newswires and The Wall Street Journal.
While the indexes for energy and gasoline dropped in the month, shelter costs rose in July.
Excluding the volatile food and energy segments, “core” CPI accelerated to 0.3 percent on a month-on-month basis in July, up from a 0.2-percent rise.
From a year ago, underlying inflation rose 3.1 percent, picking up pace too from before.
Indexes that rose over the month included medical care, airline fares and household furnishings, the report showed.
AFP
