US consumers likely faced a slight increase in underlying inflation during July as retailers incrementally raised prices on various goods affected by increased import duties. According to a Bloomberg survey of economists, the core consumer price index (CPI), which excludes volatile food and energy costs, is projected to have risen by 0.3% in July. This follows a more modest 0.2% increase in June.
While the anticipated 0.3% rise would represent the most significant gain since the beginning of the year, US consumers, particularly drivers, are experiencing some relief at the petrol pump. Lower petrol prices likely contributed to limiting the overall CPI gain to 0.2%, as indicated by the government’s report expected on Tuesday.
Increased US tariffs have begun to impact consumer prices in sectors such as household furnishings and recreational goods. However, a separate measurement of core services inflation has remained relatively stable thus far. Despite this, many economists anticipate that the impact of higher import duties will continue to gradually affect consumer prices in the coming months.
