US inflation rises in July before expected rate cuts

Consumer prices in the US generally rose in July, but rising inflation is not expected to alter expectations that the Federal Reserve will further reduce interest rates next month. because of rising trade tensions.

The US Department of Labor announced Tuesday that its consumer price index rose 0.3% last month, thanks to the rising cost of energy products and many other goods.

The consumer price index rose 0.1% for two consecutive months and, during the July period, rose 1.8% after a 1.6% gain in June.

Economists polled by Reuters forecast a 0.3% rise in the CPI in July and 1.7% year on year.

Excluding volatile components of energy and food, the index rose 0.3% after rising in June.

The so-called basic consumer price index (CPI) was supported by rising prices for textiles, airline tickets, health care furniture and home furnishings.

In the last 12 months of July, the core CPI rose 2.2% after rising 2.1% in June.

The US central bank, which aims for a 2% inflation rate, monitors the personal consumption expenditure index in order to make monetary policy decisions.

The basic index of consumer spending increased 1.6% in June from the previous year and missed its target for the year.

Inflation remains moderate despite tariffs imposed by the United States on Chinese imports, most of them being taxed on capital goods, but that could change after US President Donald Trump announced in July a tariff of 10% on Chinese imports. $ 300 billion as of September 1st.

The new tariffs will mainly affect consumer goods.