Consumer prices rose 2.7% in July compared to a year ago, clocking in lower than economists expected and holding steady from the previous month. The reading defied fears of further price increases as result of President Donald Trump's tariffs.

The inflation report is the first major data release from the U.S. Bureau of Labor Statistics (BLS) since Trump fired the agency's commissioner earlier this month, just hours after the release of a weak jobs report.

The reading snaps two consecutive months of increased inflation. Price hikes stand below a 3% rate recorded in January, the month Trump took office.

In recent months, tariffs modestly contributed to the uptick in overall inflation, analysts previously told ABC News.

In a social media post, Trump leveled strident criticism and baseless

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