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American Focus > Blog > Economy > Here’s the inflation breakdown for July 2025 — in one chart
Economy

Here’s the inflation breakdown for July 2025 — in one chart

Last updated: August 12, 2025 11:00 am
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Here’s the inflation breakdown for July 2025 — in one chart
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Inflation remained stable in July, with declines in prices for essentials like groceries and gasoline balancing out increases in other consumer goods. However, experts are warning that certain Trump administration policies may be fueling inflation in specific sectors, with potential for more significant impacts in the coming months.

Mark Zandi, chief economist at Moody’s, pointed to the influence of tariffs and immigration policies on inflation trends. While the overall consumer price index (CPI) rose by 2.7% in July compared to the previous year, the effects of tariffs and immigration policies are expected to become more pronounced in the near future.

Grocery and gasoline prices saw decreases in July, helping to offset inflationary pressures in other areas. Economists often look at core CPI figures, which exclude energy and food prices, to get a clearer picture of underlying inflation trends. The core CPI has been rising steadily, reaching a rate of 3.1% in July 2025.

The impact of tariffs is most evident in consumer goods prices, particularly for items like household furnishings and apparel. The recent data shows a 0.2% increase in core goods inflation over the past two months, a significant change from the usual trend of flat or declining prices for goods.

While some government officials have downplayed the role of tariffs in driving consumer prices higher, economists like Michael Pearce of Oxford Economics predict that core goods inflation could reach 3.8% by the end of the year as tariff effects become more pronounced.

The full impact of tariffs may not be felt immediately, as businesses may delay passing on higher costs to consumers. This gradual approach could prolong the inflationary effects of tariffs over several months. Additionally, changes in immigration policies are also contributing to inflationary pressures in sectors that rely heavily on immigrant labor, such as personal care services.

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Overall, the data suggests a complex interplay of factors influencing inflation trends, with potential for further escalation in the months ahead. It will be crucial for policymakers and businesses to closely monitor these developments to mitigate any adverse effects on consumers and the broader economy. The world of technology is constantly evolving, and new advancements are being made every day. One of the most exciting areas of technology is artificial intelligence (AI), which is revolutionizing the way we live and work. AI is the development of computer systems that can perform tasks that normally require human intelligence, such as speech recognition, decision-making, and visual perception.

One of the key areas where AI is making a significant impact is in the field of healthcare. AI has the potential to transform the way medical professionals diagnose and treat patients, ultimately improving patient outcomes and saving lives. With the help of AI, doctors can analyze large amounts of data to make more accurate diagnoses, predict the progression of diseases, and recommend personalized treatment plans.

AI is also being used to develop new medical devices and technologies that can improve patient care. For example, AI-powered robots are being used to assist surgeons during complex procedures, reducing the risk of human error and improving surgical outcomes. AI is also being used to develop smart sensors that can monitor patients in real-time, alerting healthcare providers to any changes in their condition and enabling early intervention.

In addition to improving patient care, AI is also helping to streamline administrative tasks in healthcare. AI-powered software can automate routine tasks such as scheduling appointments, processing insurance claims, and managing medical records, freeing up healthcare professionals to focus on providing quality care to patients.

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Despite the many benefits of AI in healthcare, there are also challenges and concerns that need to be addressed. One of the main concerns is the ethical implications of using AI in healthcare, such as ensuring patient privacy and data security, and preventing bias in algorithms that could result in unequal treatment of patients.

Overall, AI has the potential to revolutionize the healthcare industry and improve patient outcomes. As technology continues to advance, it is important for healthcare professionals to stay informed and adapt to these changes in order to provide the best possible care to their patients. The future of healthcare is bright with the possibilities that AI brings, and it is an exciting time to be a part of this ever-evolving field.

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