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Inflation in the USA is developing moderately despite US tariffs. Consumer prices rose only slightly in July (symbolic image)
Keystone
Surprisingly, there was no change in inflation in the USA in July. Year-on-year, consumer prices rose by 2.7 percent, as in the previous month, according to the Department of Labor in Washington on Tuesday.
Experts had expected stronger inflation of 2.8 percent, partly due to increased tariffs imposed by US President Donald Trump on imported goods.
A stronger rise in inflation in the US has been forecast for months as a result of the US government's aggressive tariff policy. "Compared to the price-driving potential of US tariff policy, inflation will remain subdued in July," commented Elmar Völker, analyst at Landesbank Baden-Württemberg.
The tariff effect has so far been "relatively moderate", said Bernd Weidensteiner, analyst at Commerzbank. Many companies have obviously not yet passed on the tariffs to their customers. However, this is likely to be only temporary. "We continue to assume that the tariffs will have an increasing impact on consumer prices," said the Commerzbank expert.
The US Federal Reserve is aiming for an annual inflation rate of two percent. However, the unexpectedly weak inflation in July suggests that interest rates will be cut in the near future. On the currency market, the US dollar reacted to the price data with significant losses.
The euro-dollar exchange rate, for example, rose to 1.1630 on Tuesday afternoon from 1.1610 dollars previously. And against the Swiss franc, the dollar slipped back below the 0.81 franc mark.
12.08.2025, 15:02
12.08.2025, 15:48
