Consumer prices rose 0.2 in July, according to data released Tuesday by the Bureau of Labor Statistics (BLS), as the economy braces for the full imposition of President Trump’s tariffs.
The latest reading of the consumer price index (CPI) showed monthly and annual inflation plateauing as declining gasoline prices wiped out increases in the costs of medical care airfares, household furnishings and a wide range of other goods and services.
Prices rose 0.2 percent on the month and 2.7 percent, over the past year, according to BLS, in line with June levels.
But core inflation — which strips out volatile food and energy prices — came in at 0.3 percent over the past month and 3.1 percent over the past year.
The July CPI report was largely in line with the expectations of economists, who projected a 0.2 percent monthly increase in prices and an annual inflation rate of 2.7 percent, according to consensus estimates.
July’s inflation numbers are the first major economic report released by BLS in the wake of Trump’s explosive response to the monthly jobs report for July.
The report showed the U.S. gaining just 73,000 jobs in July and included stunning revisions to the initially reported employment gains for May and June.
On net, the U.S. gained barely more than 100,000 jobs over the past three months, roughly a third of what economists say is necessary to prevent unemployment from rising.
Trump responded by accusing the BLS — a nonpartisan agency of statisticians — of manipulating the jobs data to benefit Democrats, but he provided no evidence to support his claim. The president also fired former BLS Commissioner Erika McEntarfer, sparking an outcry from her Democratic and Republican predecessors, along with scores of economists.
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