In July, US consumers encountered a slight uptick in underlying inflation as retailers raised prices due to higher import tariffs. The core consumer price index increased by 0.3%, marking the largest gain this year, while overall consumer price index growth was limited to 0.2% by cheaper gasoline prices. Higher tariffs have started influencing consumer prices for household goods, although core services inflation remains subdued. The Federal Reserve faces challenges as the labor market shows signs of weakness. Economists anticipate solid retail sales growth bolstered by vehicle purchases and online shopping, despite a lack of enthusiasm in consumer spending indicators.
US consumers likely experienced a slight increase in underlying inflation in July, with the core consumer price index rising 0.3% and retail sales showing solid gains.
The impact of higher US tariffs has begun to affect consumer prices, particularly in household furnishings and recreational goods, while core services inflation remains stable.
Collection
[
|
...
]