Despite concerns that the tariff policy of the Donald Trump administration will drive up inflation, the consumer price index in the United States in July remained at the same level as the previous month.
According to the U.S. Department of Labor on the 12th (local time), the consumer price index (CPI) in July increased by 2.7% compared to the same month last year. This is the same level as June (2.7%). Compared to a month ago, it rose by 0.2%.
The core CPI, excluding volatile energy and food prices, increased by 3.1% year-on-year and 0.3% month-on-month, respectively. The year-on-year increase in the core index rose compared to June (2.9%), marking the highest level in five months since February.
The figures released that day largely matched the forecasts compiled by Dow Jones. The year-on-year increase in the representative index fell short of forecasts by 0.1 percentage points, while other figures met expectations.
Economic experts have expressed concerns that the tariff policy of the Trump administration will trigger inflation. Price pressures due to the impact of tariffs have clearly shown an inflation rebound centered on the core index in July.
In the previous June consumer price index, prices of some items with a high proportion of imports, such as toys and clothing, had increased. In July, prices of some specific items such as ham (3.7%), tomatoes (3.3%), infant and children's clothing (3.3%), and coffee (2.2%) saw high price increases compared to the previous month. As the vacation season arrived, airfare increased by 4.0% compared to the previous month. However, overall food prices remained stagnant, and energy prices fell by 1.1% compared to the previous month, limiting the overall increase in the representative index.
Despite concerns about the rebound in the core index, the July consumer price increase remained generally at expected levels without a "surprise rebound," calming the financial markets. According to the electronic trading platform TradeWeb, the yield on the 10-year U.S. government bonds was around 4.27% at 9 a.m. Eastern Time, remaining stable compared to the previous session. The yield on the 2-year U.S. government bonds, sensitive to monetary policy, was 3.783% at the same time, dropping by 2 basis points (1 basis point = 0.01 percentage points) compared to the previous session.