Slowing rent increases and cheaper gas are offsetting some impacts of Trump's sweeping tariffs. Excluding the volatile food and energy categories, core prices rose 3.1%, up from 2.9% in June.

U.S. consumer prices likely increased moderately in July, though rising costs for goods like household furniture and apparel because of import tariffs probably resulted in a measure of underlying inflation posting its largest gain in six months.

A key report Tuesday is expected to show that the rate of inflation increased in July, a potential indication that President Donald Trump’s tariffs are increasingly weighing on consumers