Overview

• Headline consumer prices in July remained unchanged at 2.7% year-on-year, a trend supported by a 9.5% drop in fuel costs.
• Core inflation excluding food and energy climbed to 3.1% in July, marking its highest level this year and complicating Federal Reserve rate-cut plans.
• Broad import tariffs now in effect have had only a moderate impact on prices so far, but analysts warn that pass-through effects will intensify in the coming months.
• President Trump’s firing of BLS chief Erika McEntarfer and appointment of E.J. Antoni has raised concerns among economists about the agency’s statistical independence.
• Germany’s July inflation held steady at 2.0% year-on-year with lower energy costs offset by higher food and service prices, highlighting divergent pressures across major economies.