US consumer inflation holds at 2.7% as tariff worries persist
A person arranges groceries in El Progreso Market in the Mount Pleasant neighbourhood of Washington, DC, US, on Aug 19, 2022. (File photo: Reuters/Sarah Silbiger)
WASHINGTON: Consumer inflation in the United States was unchanged in July, data showed on Tuesday (Aug 12), but underlying price increases picked up as US President Donald Trump's sweeping tariffs ripple through the world's biggest economy.
The consumer price index (CPI) rose 2.7 per cent from a year ago in July, the 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 US 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 per cent 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 per cent on a month-on-month basis in July, up from a 0.2-per cent rise.
From a year ago, underlying inflation rose 3.1 per cent, picking up pace too from before.
Indexes that rose over the month included medical care, airline fares and household furnishings, the report showed.
