US inflation stayed at 2.7% in July, matching June's pace, as cheaper energy offset tariff-driven price rises for goods like coffee and tools. Core inflation, excluding food and energy, accelerated to 3.1% — its fastest in six months — suggesting underlying pressures are building despite headline stability. The data supports expectations the Federal Reserve could cut rates in September to counter slowing job growth, though persistent core strength may complicate its decision. Tariffs have begun to filter into some prices, but analysts say the impact is still limited. Markets took the release positively, with Treasury yields dipping as traders priced in higher odds of near-term rate cuts.