The Federal Reserve Bank of New York reported a slight increase in U.S. consumer inflation expectations for July 2025. The one-year-ahead inflation expectation rose to 3.1% from 3.0% in June, while the three-year-ahead expectation remained steady at 3.0%. The five-year-ahead inflation expectation increased to 2.9% from 2.6% in June, marking the highest level since February 2025. Home price rise expectations remained stable at 3%. The survey also indicated improved perceptions of the labor market. Meanwhile, the upcoming U.S. Consumer Price Index (CPI) report for July is anticipated to show a moderate rise in inflation, with core prices expected to increase by 0.31% month-over-month, bringing the annual core inflation rate to 3.1%. Headline CPI is forecasted to rise by 0.24% month-over-month, lifting the year-over-year rate to 2.8%. Import tariffs on goods such as household furniture and apparel are identified as contributing factors to underlying inflation pressures. The Cleveland Fed's inflation nowcast predicts the July CPI year-over-year rate to hold steady at 2.7%, with an expected re-acceleration to 2.9% in August. The CPI data release is scheduled for August 12 at 8:30 a.m. Eastern Time and is considered a key indicator for the Federal Reserve's upcoming monetary policy decisions.