US inflation held steady in July despite import tariffs, bolstering bets that the Federal Reserve may cut interest rates next month.
Latest official figures showed that consumer prices rose 2.7% in the year to July, the same pace as in June, when lower energy costs offset price rises for items such as coffee, tomatoes and tools.
Analysts said the relatively contained pace of price rises could bolster the case for the US central bank to lower borrowing costs to support the economy as job growth slows.
But an underlying inflation measure - which is seen as a better indicator of economic trends - showed prices rising at the fastest pace since February.
So-called core inflation, which strips out food and energy costs, rose by 3.1% which is the fastest pace in six months, according to Tuesday's data.
