Summary
In July, U.S. inflation did not change, but core inflation, which excludes food and energy, rose. This increase in core inflation is partly due to tariffs that made imported goods more expensive. Gas prices fell, while restaurant and some imported goods prices went up.
Key Facts
- Overall consumer prices rose 2.7% in July from a year earlier.
- Core inflation, excluding food and energy, rose to 3.1% in July.
- Federal Reserve’s target for inflation is 2%.
- Gas prices dropped 2.2% from June to July, with a 9.5% decrease from last year.
- Grocery prices fell 0.1% in July but were up 2.2% compared to the previous year.
- Tariffs contributed to the rise in prices of imported goods like shoes and furniture.
- President Trump fired the head of the Bureau of Labor Statistics and appointed E.J. Antoni as the new head.
- The BLS is collecting fewer price quotes for inflation reports due to a hiring freeze.
