U.S. inflation was flat last month, according to the Associated Press, but a measure of underlying inflation hit a five-month high as tariffs pushed the cost of some imported goods higher, while gas and grocery prices cooled.
The Labor Department said Tuesday that consumer prices rose 2.7% in July from one year earlier. That’s the same as the previous month and up from April’s post-pandemic low of 2.3%.
So-called “core” prices, which exclude volatile food and energy categories, increased 3.1%, up from June’s 2.9%.
The latest data suggest that slowing cost growth for rents and cheaper gas are offsetting some of the impact of President Donald Trump’s broad tariffs.
Tuesday’s figures likely reflect the 10% universal tariff Trump imposed in April and higher duties on some countries, such as China and Canada.
