Inflation data for July delivered a split message for markets — headline price growth cooled, but underlying inflation came in hotter than expected, suggesting President Donald Trump’s tariff wave has yet to create a broad price shock in the economy.

The Consumer Price Index rose 2.7% year-over-year in July, unchanged from June and falling short of economists’ forecasts of 2.8%, while the monthly rate decelerated from 0.3% to 0.2%, in line with expectations.

Core inflation — which strips out volatile food and energy prices — …

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