Consumer prices rise 2.7% annually in July, less than expected amid tariff worries [View all]

Source: CNBC

Published Tue, Aug 12 2025 8:31 AM EDT Updated 7 Min Ago


A widely followed measure of inflation accelerated slightly less than expected in July on an annual basis as President Donald Trump’s tariffs showed mostly modest impacts.

The consumer price index increased a seasonally adjusted 0.2% for the month and 2.7% on a 12-month basis, the Bureau of Labor Statistics reported Tuesday. That compared to the respective Dow Jones estimates for 0.2% and 2.8%.

Excluding food and energy, core CPI increased 0.3% for the month and 3.1% from a year ago, compared to the forecasts for 0.3% and 3%. Federal Reserve officials generally consider core inflation to be a better reading for longer-term trends.



A 0.2% increase in shelter costs drove much of the rise in the index, while food prices were flat and energy fell 1.1%, the BLS said. Tariff-sensitive New vehicle prices also were unchanged though used cars and trucks saw a 0.5% jump. Transportation and medical care services both posted 0.8% moves higher.

Read more: https://www.cnbc.com/2025/08/12/cpi-inflation-report-july-2025.html

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