U.S. consumer prices rose 0.2% in July, keeping the annual headline inflation rate at 2.7%, the Bureau of Labor Statistics said Tuesday. Economists surveyed ahead of the release had expected 2.8%. Core inflation, which strips out food and energy, advanced 0.3% on the month and 3.1% year-over-year, the strongest pace since February and slightly above the 3.0% consensus. Energy prices continued to temper overall inflation, with gasoline down 2.2% in July. Core goods rose 0.2% for a second month, suggesting only a modest pass-through so far from President Donald Trump’s broad import tariffs, while services costs climbed 0.4%—led by shelter, health care and the largest jump in airfares in three years. Analysts noted that headline inflation remains subdued even as underlying price pressures firm, complicating the Federal Reserve’s effort to return inflation to its 2% target. Treasuries rallied and the dollar eased after the report, with two-year yields slipping and S&P 500 futures turning higher. Interest-rate futures now imply an 80%-plus chance the Fed will deliver a 25-basis-point cut at its 17 September meeting and maintain the prospect of a second move in December, despite the uptick in core inflation. The data were released amid heightened scrutiny of the BLS following recent leadership changes and budget-driven cuts to some price collection. Economists said the figures, while broadly in line with expectations, will keep the focus on how much additional tariff impact emerges in the August and September inflation prints.