WASHINGTON, D.C. – In the latest Consumer Price Index report, it shows prices for consumers went up about 2.7% over the past year. Consumer experts said tariffs showed some impact on prices but overall, inflation accelerated slightly less than expected.
The CPI report, which is the data that looks at the cost of goods and services, like groceries, clothing, gas, household items, transportation and more, is a key economic indicator used to track inflation. On Tuesday, the Bureau of Labor Statistics released their July CPI report. For the most part, it shows inflation remains stable.
“Its at 2.7 percent and its not accelerating but there are warning signs which brings us to the core inflation which is slightly higher at 3.1 percent,” said Tsvetta Kaleynska, CEO of RILA Global Consulting. The CPI report showed “core” inflation, which excludes volatile food and energy costs, rose 0.3% over the past month, marking the largest gain in six months. Annual core prices rose 3.1% in July, which is more from June’s 2.9% year-over-year increase.
The White House describes it as a win.
“Ignore the panickans [people they refer to as panicking about the economy] and trust in President Trump,” said Karoline Leavitt, the White House Press Secretary. “That is our motto here at the White House, that the America First agenda is working.”
Consumer experts describe the latest report as a mix of good and bad news.
“On the consumer side with the year over year inflation over 2.7 percent we are seeing consumers are facing the continued cost share but again there is a modest slowdown which is somewhat reassuring,” said Kaleynska. “So, we see lower energy costs, we see more stable food prices and somewhat more moderate expenses. On the business side, this means that rising inflation signals an underlying cost pressure for the businesses small and large especially when it comes to those tariffs and service related industries. While the headline is more positive for month over month there is definitely some upward pressure that maybe is squeezing those businesses.
Kaleynska adds the report shows tariffs in a way are starting to cause a pain for consumers, but the impact is very moderate so far. She adds with this report, it’s likely the Federal Reserve will cut interest rates in their next meeting.
After this report was released, President Trump took to social media once again criticizing the Federal Reserve Chair, Jerome Powell, saying he must now lower interest rates.
