WASHINGTON, D.C. — The U.S. inflation rate remained steady at 2.7% for the 12 months ending July 2025, according to data released by the Bureau of Labor Statistics on August 12, 2025. The Consumer Price Index (CPI) rose 0.2% month-over-month, driven by a 0.2% increase in shelter costs, though offset by a 1.1% drop in energy prices, including a 2.2% decline in gasoline, per BLS. Core inflation, excluding volatile food and energy, climbed 3.1%, the highest since February, raising concerns about persistent price pressures.
Economists point to President Trump’s tariffs, including a 10% universal import tax, as a key factor pushing up goods prices, with core commodities inflation hitting 1.2%, the fastest in over two years, per CNBC. “The tariff and immigration effects aren’t screaming at us, but they’re certainly speaking very loudly,” Mark Zandi, chief economist at Moody’s, told The Guardian. Despite the uptick, White House Press Secretary Karoline Leavitt called the data a win, stating it “beat market expectations once again,” per The New York Times.
Key inflation trends include:
- Services Surge: Airline fares rose 4%, dental services hit record highs.
- Tariff Impact: Apparel and household furnishings up 0.4% and 1%, respectively.
- Labor Market: Jobless claims fell to 224,000, signaling stability.
Posts on X, like those from @fiidiidata, expressed optimism for a Federal Reserve rate cut in September, given inflation’s lighter-than-expected 2.7% versus forecasts of 2.8%. However, Fed officials remain cautious, citing tariff uncertainties, per Reuters. With consumer sentiment dropping to 58.6 in August, per the University of Michigan, and inflation expectations rising to 4.9%, the Fed faces a delicate balancing act as it prepares for its next meeting.
Source: BLS
