Rising U.S. Consumer Prices Spark Inflation Concerns Amid Tariff Effects
U.S. consumer prices rose moderately in July partly due to import tariffs, causing a notable rise in underlying inflation. The CPI increased by 0.2%, with core CPI seeing the largest gain in six months. The report heightened concerns over inflation data quality due to budget cuts affecting data collection.
In July, U.S. consumer prices saw a moderate rise, driven partly by increased costs for goods, resulting from import tariffs. This development led to the largest increase in a measure of underlying inflation in six months.
The consumer price index (CPI) increased by 0.2% last month after a 0.3% rise in June, according to the Bureau of Labor Statistics. Year-over-year, CPI advanced by 2.7% through July. Notably, the core CPI, excluding food and energy, rose by 0.3%, marking its biggest rise since January.
The Federal Reserve, tracking inflation measures for a 2% target, is under scrutiny as financial markets anticipate potential interest rate cuts after disappointing employment reports. Concerns are mounting over inflation and employment data quality, attributed to budget cuts affecting CPI data collection across certain U.S. areas.
(With inputs from agencies.)
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