The core Consumer Price Index picked up to 3.1% Y/Y in July, its highest level since February, exceeding the 3.0% consensus and the +2.9% pace in June, according to data released by the Bureau of Labor Statistics on Tuesday.

Food prices rose 2.7% on an annual basis last month, the same as the overall inflation rate. Items that have seen big cost increases since last July include eggs, which are up 16.4%; roasted coffee, up more than 14.8%; and ground beef, which is up 11.5%.

Wall Street expected the impact of Trump tariffs to be a bit more mild in July, after CPI inflation data for June showed a 0.5% jump in core goods prices, excluding autos, which was the biggest increase in two years. Intel INTC is leading the S&P 500 early Tuesday after CEO Lip-Bu Tan got a vote of confidence from President Trump.

Chicago Fed President Austan Goolsbee called a jump in the prices of some services “the most concerning thing” in Tuesday’s consumer-price index report for July. Policymakers should “reserve judgment” until other reports,

The consumer price index rose by 3.1% year over year in January, higher than the forecast of 2.9%. That's also below the 3.4% rise in December. The CPI rose by 0.3% month over month in January.

Investors tend to watch the consumer-price index for insight into how prices are affected by inflation. And when investors are focused on inflation and changes in the Fed's rate policy, the CPI report has the potential to move markets.

Trump's pick to lead the Bureau of Labor Statistics, E.J. Antoni, has suggested pausing the monthly jobs report, raising fears he could alter inflation data that's used to set cost-of-living adjustments for seniors.

The July index for bread was 241.2, up 0.4% from June and up 1.3% from a year ago. Under this heading, the CPI for white bread was 431.6, down 0.1% from June but up 0.5% from July 2024. For bread other than white, the index was 475.6, up 1.2% from June and up 2.3% from a year ago.