Updated August 12, 2025 at 2:53 PM PDT

Inflation continued to dog shoppers last month, as consumers were forced to shoulder more of the cost of President Trump's tariffs.

Consumer prices in July were up 2.7% from a year ago, according to a report Tuesday from the Labor Department. The annual increase was similar to the month before.

Rising prices on imported items such as toys and furniture contributed to the higher cost of living. That was partially offset by a sharp drop in the price of gasoline.

Stripping out volatile food and energy prices, "core" inflation for the 12 months ending in July was 3.1%. That's up from 2.9% for the 12 months ending in June.

Consumers will likely continue paying more

Since April, Trump has imposed tariffs of 10%-30% on nearly everything the U.S. impo

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