Inflation held steady in July

WASHINGTON (NEXSTAR) – Lower prices for gas and food kept inflation steady last month but the cost of housing was significantly higher in July than it was last year.

Gas prices plummeted last year and that’s kept inflation lower than expected but a different number, core inflation, which excludes gas and groceries rose 3% and economists say it’s increasing sharply.

“The economic indicators show that we are moving in the right direction,” said White House Press Secretary Karoline Leavitt.

The White House says it’s a good economic report.

Inflation in July was lower than most economists expected but prices rose 2.7% over the year before.

“It’s better than expected but in my opinion it’s still a little hot. Anytime we’re at that 2% inflation number we’re in the wrong spot,” said Thomas Aiello of the National Taxpayers’ Union.

Thomas Aiello with the National Taxpayers’ Union says economists want to keep inflation below 2% but housing is driving it up.

The consumer price index shows Americans paid 3.7% more for housing in July over last year.

The Labor Department says furniture prices are up 3.4% from last year and coffee, most of it is imported, is now about $2.10 more expensive per pound than last year according to the Federal Reserve.

“The full tariff picture remains to be seen,” said Aiello.

The inflation numbers are from July, before most of President Donald Trump’s broad reciprocal tariffs took effect, which was last Thursday.

President Trump says the tariffs will restore wealth to the United States.

Economists are watching the Federal Reserve closely as inflation numbers are lower than expected.

Fed officials have raised concerns about the job market, which suggests the Federal Reserve may lower interest rates in September.