U.S. CPI Rises 2.7% in July, Below Expectations
U.S. consumer prices increased by 2.7% in July
Annual U.S. consumer price growth in July came in slightly below expectations, potentially strengthening the case for the Federal Reserve to consider an interest rate cut at its September policy meeting.
Data from the Bureau of Labor Statistics showed the Consumer Price Index (CPI) rose 2.7% year-on-year, matching June’s pace and coming in under economists’ forecasts of 2.8%. Every month, CPI increased by 0.2%, in line with estimates and lower than June’s 0.3% gain.
Excluding volatile categories such as food and energy, core CPI climbed 3.1% annually, up from 2.9% in June and just above the expected 3.0%. Month-on-month, core inflation rose 0.3%, compared to 0.2% in the prior month and consensus forecasts.
Analysts caution that core CPI could face renewed upward pressure in the coming months as higher U.S. tariffs make certain goods costlier to import, with businesses likely to pass these expenses on to consumers.
