In the latest inflation report, consumer prices rose by 2.7% annually in July, reflecting a stable inflation environment despite concerns over the impact of tariffs imposed during the Trump administration. Core inflation saw its most significant increase in six months, raising worries among economists about the potential ramifications. While cheaper gasoline and food have helped to restrain overall price growth, underlying inflation remains persistent, hinting at further economic uncertainty. The Federal Reserve is closely monitoring these developments, with market expectations shifting towards a possible rate cut in response to the mixed economic signals.