Prices rose 0.2% in July in a sign that tariffs haven’t had a major impact on inflation so far, the government said Tuesday.
The Consumer Price Index rose 2.7% on a yearly basis, matching the level for the 12 months ending in June, according to the Bureau of Labor Statistics.
The trendline will weigh on Federal Reserve officials meeting in September to consider interest rates. President Trump wants the central bank to cut rates, but Chairman Jerome Powell and others at the Fed have resisted those calls.
Rising shelter prices were the main factor in the July increase, while the food index remained unchanged and gasoline prices fell. Things like medical care, airline fares, recreation and home furnishings saw a slight increase.
It was the first major BLS report since Mr. Trump fired its leader, Erika McEntarfer, over disappointing job numbers he called rigged.
Mr. Trump said he is nominating E.J. Antoni, an economist at the conservative Heritage Foundation who’s criticized BLS methodology, to lead the bureau.
“Our Economy is booming, and E.J. will ensure that the Numbers released are HONEST and ACCURATE. I know E.J. Antoni will do an incredible job in this new role,” Mr. Trump wrote on Truth Social.
Inflation remains mild compared to doomsday predictions earlier in the year, emboldening Mr. Trump to pursue an aggressive trade agenda that includes a blanket 10% tariff on all imports and heftier levies on dozens of trading partners.
However, Mr. Trump only recently implemented his most ambitious plans.
Last week, the president imposed tariffs ranging between 15% and 41% on more than 67 countries, raising levies to their highest levels in over a century. He’s solidified the 10% blanket tariff on all imports and is implementing the 15% rate he negotiated with places such as the European Union, Japan and South Korea.
Major price increases from the tariffs, if they occur, could take several weeks to appear.
Mr. Trump says his approach will force companies to make products in America and bring in billions in revenue for the U.S. government.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.