Consumer prices rise 2.7% annually in July, less than expected amid tariff worries

A widely followed measure of inflation accelerated slightly less than expected in July on an annual basis as President Donald Trump's tariffs showed mostly modest impacts.

The consumer price index increased a seasonally adjusted 0.2% for the month and 2.7% on a 12-month basis, the Bureau of Labor Statistics reported Tuesday. That compared to the respective Dow Jones estimates for 0.2% and 2.8%.

Excluding food and energy, core CPI increased 0.3% for the month and 3.1% from a year ago, compared to the forecasts for 0.3% and 3%. Federal Reserve officials generally consider core inflation to be a better reading for longer-term trends.