Inflation was unchanged in July as tariffs lifted the cost of imported goods such as furniture, appliances, and toys.

This could make it harder for the Federal Reserve to cut short-term interest rates as President Donald Trump has demanded.

July CPI inflation report

By the numbers:

Consumer prices rose 2.7% in July from a year earlier, the Labor Department said Tuesday, the same as the previous month and up from a post-pandemic low of 2.3% in April. Excluding the volatile food and energy categories, core prices rose 3.1%, up from 2.9% in June.

Dig deeper:

The figures suggest that slowing cost growth for rents and cheaper gas are offsetting some of the impact of Trump's sweeping tariffs.

Big picture view:

Tuesday's figures likely reflect the 10% universal tariff Trump imposed in Ap

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