US consumer inflation held steady at 2.7% in July, but core prices rose as President Donald Trump’s sweeping tariffs continued to influence the economy, according to data released on Tuesday.However, the figure came in slightly below the 2.8% rate predicted by analysts in a median forecast from Dow Jones Newswires and The Wall Street Journal.Core inflation, which excludes volatile food and energy prices, climbed to 3.1% from 2.9% in June—still above the Federal Reserve’s 2% target.The Labor Department’s data suggests slowing rent hikes and falling gas prices are helping offset the impact of President Donald Trump’s sweeping tariffs, including the 10% universal duty introduced in April and higher levies on imports from countries like China and Canada. Energy prices, including gasoline, dropped sharply, while grocery prices dipped 0.1% from June, AP reported.However, certain imported goods saw notable increases, with shoe prices up 1.4% and furniture costs rising 0.9% from the previous month.On a monthly basis, overall prices rose 0.2% in July, down from 0.3% in June, while core prices gained 0.3% versus 0.2% in the prior month. Categories such as medical care, airline fares, and household furnishings posted gains.Coffee prices have surged nearly 15% over the past year due to poor harvests overseas, with the potential for further increases as tariffs on Brazilian imports take effect. Most US coffee is imported, making the commodity particularly sensitive to trade policies.The data comes as analysts watch for signs of economic cooling following a weaker jobs report in July. Earlier, Trump also renewed attacks on Federal Reserve Chair Jerome Powell for not cutting interest rates and hinted at allowing a lawsuit over the Fed’s $3 billion building renovation to proceed.