Newsweek: White House press secretary Karoline Leavitt issued a statement after U.S. inflation was unchanged in July, as rising prices for some imported goods were offset by declines in gas and grocery costs.
The result leaves overall prices only modestly higher than a year earlier, according to the latest Consumer Price Index (CPI) report.
White House Reacts to Inflation Report
Leavitt said in a press release, “Today’s CPI report revealed that inflation beat market expectations once again and remains stable, underscoring President Trump’s commitment to lower costs for American families and businesses. The Panicans continue to be proven wrong by the data – President Trump’s tariffs are raking in billions of dollars, small business optimism is at a five-month high, and real wages are rising. The American people have rightfully put their trust in President Trump’s America First agenda that is Making America Wealthy Again.”
CPI Report: Gas, Groceries Cheaper, But Other Prices Quietly Surging — Here’s Why
Headline inflation held steady at 2.7% year-over-year, but core prices — which strip out volatile food and energy costs — rose 3.1%, up from 2.9% in June. Economists say this uptick signals persistent price pressures lurking beneath the surface, even as consumers enjoy short-term relief at the pump and in the supermarket aisle.
The decline in gas prices, down 2.2% from June and 9.5% from last year, combined with a 0.1% drop in grocery prices, helped keep overall inflation in check. But tariffs imposed earlier this year by President Donald Trump are lifting the cost of certain imported goods, including shoes, furniture, and coffee. Businesses are absorbing some of these costs for now, but analysts warn more price hikes — or subtler strategies like “shrinkflation” — could be on the way.
For the Federal Reserve, the data poses a policy dilemma. While slower hiring and cooling headline inflation could argue for an interest rate cut in September, rising core prices suggest inflationary pressures remain stubborn. Chair Jerome Powell has signaled caution, but with tariffs continuing to ripple through supply chains, the Fed must weigh the risk of loosening too soon against the risk of letting the job market weaken further.
When is the CPI Report Released?
The CPI report is released monthly by the U.S. Bureau of Labor Statistics, typically around the middle of the month. The data reflects price changes from the previous month, giving economists, policymakers, and the public a fresh look at inflation trends. For example, July’s report — detailing changes in gas, grocery, and core prices — was published in mid-August.
