A key measure of consumer prices that strips out energy and food costs rose at a faster clip in July, the Bureau of Labor Statistics said on Tuesday.

Why it matters: It is a sign that inflation is starting to heat up as the effects from President Trump's tariffs ripple across the economy.

By the numbers: The Consumer Price Index rose 0.2%, ticking down from the 0.3% increase in June, as energy and gasoline prices plummeted. • But core CPI — the measure watched most closely by policymakers, which excludes food and energy prices — rose 0.3%, up from the previous month's 0.2% increase. • In the 12 months through July, core CPI rose 3.1%, up from the prior month's 2.9% increase. • Overall CPI rose by 2.7%, holding steady from June.

The big picture: The data comes at critical time for

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