<h1>US inflation steady at 2.7% in July, core inflation hits 3.1% amid tariff-driven cost increases</h1> US inflation remained steady in July at 2.7% year-over-year, while core inflation, excluding food and energy, increased to 3.1%, its highest in five months. The rise in underlying inflation is attributed to tariffs imposed earlier in the year, which raised costs on imported goods, despite declines in gas and grocery prices. These tariffs, including a 10% universal tariff and higher duties on certain countries, have complicated the Federal Reserve's monetary policy decisions. Although job growth slowed following the tariff announcements, increasing expectations for an interest rate cut, the Fed chair indicated that persistent inflation may prevent easing. This stance has led to tensions with the executive branch, which has publicly pressured the central bank to lower borrowing costs.