The Labor Department’s consumer price index for July showed that the annual pace of inflation remained at 2.7 percent from July 2024. That’s the same as the annual rise reported in June and above April’s post-pandemic low of 2.3 percent, though it was just under economists’ expectations.

Economists have warned for months about rising inflation due to U.S. tariffs, but like the recent tsunami warnings from the Kamchatka earthquake, the danger has not come to pass. Until now.

July’s Consumer Price Index report showed an acceleration in “core” prices that strip out volatile food and energy items.