Natalie Sherman
BBC News
US inflation held steady in July as lower energy costs offset price rises for coffee and tools.
The latest official figures showed consumer prices rose 2.7% in the year to July but underlying figures – which are seen as a better indicator of economic trends – show that inflation ticked up to the highest level since February.
Investors are watching inflation data to see whether US tariffs on global imports are feeding through into prices.
The US Federal Reserve has, so far, held interest rates as it assesses whether inflation will rise because of the levies despite pressure by President Donald Trump to cut borrowing costs.
Underlying inflation, which strips out food and energy costs, rose by 3.1% which is the fastest pace in six months, according to Tuesday’s data.
