Consumer prices in July rose 2.7%, the same annual increase as June. However, the core rate, which removes good and energy categories that are more volatile, increased by 3.1%. CBS News business analyst Jill Schlesinger breaks down the report.

Washington

The most recent inflation data from the federal government shows consumer prices rising by 2.7% over the past year, matching the previous month's annual increase. The core inflation rate, which excludes food and energy, increased by 3.1%. Gas prices have dropped by 9.5% compared to a year ago, while food prices for home consumption rose by 2.2%. Dining out saw a higher increase of 4.4%.

Healthcare costs rose by 4.3%, and housing costs, while moderating, are still above pre-pandemic levels at 3.7%. Coffee prices experienced a significant jump of 14.5%, attributed in part to tariffs on imports from countries like Brazil. Analysts are monitoring whether tariffs will have a broader impact on overall inflation rates.

What does the July inflation report mean for your finances?

Grab your wallet and a pen and pad, because in today's Money Watch, we are looking at the latest inflation numbers from the federal government. Consumer prices rose 2.7% last month, the same annual increase as in June. But the core rate, which removes the volatile food and energy categories, increased by 3.1%. CBS News Business Analyst Jill Schlesinger is here with everything you need to know that will affect your wallet. Good morning, Jill. Good morning. All right, so what stands out to you from this report? You know, when we look at the overall numbers, we're kind of monitoring, how are tariffs kind of seeping into the data? And that overall number, 2.7% annual increase, is the same as what we saw previously, but that core rate does start to maybe give you some clues. In that overall rate, something fascinating. We always complain about gas prices when they're higher. Gas prices, the gas index, down 9.5% from a year ago. And food, it's really interesting. I know we all complain, going grocery shopping, it feels expensive, it is. But when you buy food for the home, the rise in the prices, 2.2%. When you go out for a full service meal, 4.4%, twice as much to go out to eat. So I think this is really interesting. It's a good habit forming here that we say, let's stay at home. What about healthcare and housing? Yeah, these are huge categories in our budgets, right? We spend so much money. And we talked a lot about how the shelter component was really problematic. People were renewing their rents and they were going sky high. Things are moderating, that's good. I was concerned about the medical care and the medical services, which should not be impacted by tariffs, but up pretty dramatically, 4.3% from a year ago. That shelter index at 3.7, it's usually around 3.4 before COVID, so not so bad. But those medical services, very big spending going on there. So where do you see the tariffs impacting the economy? I mean, obviously when you look at electronics, when you look at furniture, some clothing, one area did actually stick out to me and should stick out for all of us here in Morning Television. Coffee. Caffeine addicts, I'm so sorry. Coffee prices are up by 14.5% from a year ago. Why is that? Well, there are tariffs on a lot of places like Brazil, and this does not even include the most recent increase on the Brazilian goods coming in. I fear that we will stop spending on everything except coffee, at least in this industry, or anyone who works early in the morning, but that's a pretty notable jump. It really is. And what we're going to see now is we're going to see whether or not these tariffs start bleeding through the overall rates. That's really what we're looking for. So far, limited, but we're on alert. All right, Jill, thank you very much.

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Breakdown