Inflation held steady in July as the headline figure for the Consumer Price Index was at 2.7% year-over-year, unchanged from June and lower than the expected 2.8% growth.

The core consumer price index, a key measure of inflation watched closely by the Federal Reserve, jumped to 3.1% in July, marking the largest gain in six months as companies grapple with President Donald Trump’s trade war.

Prices in the restaurants and hotels division rose overall by 3.4% in the 12 months to July 2025, up from 2.6% in the 12 months to June. On a monthly basis, prices rose by 0.4% in July 2025, compared with a fall of 0.4% a year ago.