The Labor Department’s consumer price index for July showed that the annual pace of inflation remained at 2.7 percent from July 2024. That’s the same as the annual rise reported in June and above April’s post-pandemic low of 2.3 percent, though it was just under economists’ expectations.

July’s Consumer Price Index report showed an acceleration in “core” prices that strip out volatile food and energy items.

Consumer prices rose 2.7% in July from a year earlier, the Labor Department said Tuesday, the same as the previous month and up from a post-pandemic low of 2.3% in April. Excluding the volatile food and energy categories, core prices rose 3.1%, up from 2.9% in June. Both figures are above the Federal Reserve’s 2% target.

Stocks rallied worldwide on Tuesday as U.S. consumer prices data allayed concerns that tariffs were already starting to raise inflation, hours after Washington and Beijing agreed a trade war truce that staved off a surge in levies on Chinese imports.

Stock markets rose on Tuesday as US inflation data showed a still-subdued impact from US President Donald Trump's tariffs.