Aug. 12 (UPI) — The Consumer Price Index rose slightly less than expected in July annually as tariffs showed only a minimal influence on prices.
The CPI increased a seasonally adjusted 0.2% for the month and 2.7% on a 12-month basis, the Bureau of Labor Statistics reported Tuesday. The Dow Jones estimates were 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 with the forecasts for 0.3% and 3%. Federal Reserve officials generally consider core inflation to be a better reading for longer-term trends, CNBC reported.
The 2% increase in shelter costs was the main uptick in the index, while food prices were flat and energy fell 1.1%.
New vehicle prices, which are tariffed, were also unchanged, but used cars and trucks saw a 0.5% bump. Transportation and medical services both rose 0.8%.
Stock market futures showed gains after the report, while Treasury yields were mostly lower.
Tariffs did affect some areas. Household furnishings and supplies showed a 0.7% increase after rising 1% in June. But apparel prices rose just 0.1%, and core commodity prices increased just 0.2%. Canned fruits and vegetables, which are usually imported and also sensitive to tariffs, were flat.
“The tariffs are in the numbers, but they’re certainly not jumping out hair on fire at this point,” former White House economist Jared Bernstein said on CNBC. Bernstein served under former President Joe Biden.
The report comes in the middle of a political shake-up in the Bureau of Labor Statistics, which releases the CPI.
President Donald Trump on Monday nominated economist E.J. Antoni as commissioner of the BLS, a non-partisan agency he has criticized.
If confirmed by the U.S. Senate, the chief economist with the conservative Heritage Foundation would replace Erika McEntarfer, who was fired by Trump on Aug. 1, alleging that she had manipulated the jobs reports for three months.
He worked for the Texas Public Policy Commission before the Heritage Foundation. He has master’s and doctorate degrees in economics from Northern Illinois University.
Last week, Antoni posted on X: “There are better ways to collect, process, and disseminate data — that is the task for the next BLS commissioner, and only consistent delivery of accurate data in a timely manner will rebuild the trust that has been lost over the last several years.”
On Nov. 13, one week after Trump was elected again, he wrote on X: “DOGE needs to take a chainsaw to the BLS.”