US consumer prices rose 0.2% in July and 2.7% over the past year, slightly below expectations. Core inflation reached 3.1%, driven by rising shelter and service costs, while gas prices fell. The Federal Reserve faces challenges with high inflation and slowed hiring due to tariffs imposed by President Trump. The Bureau of Labour Statistics is under scrutiny after leadership changes and a hiring freeze affecting data collection. Economists predict consumers will bear more costs from tariffs in the coming months, with many companies already raising prices.