U.S. inflation was unchanged in July as rising prices for some imported goods were balanced by falling gas and grocery prices, leaving overall prices modestly higher than a year ago. Consumer prices rose 2.

The Labor Department’s consumer price index for July showed that the annual pace of inflation remained at 2.7 percent from July 2024. That’s the same as the annual rise reported in June and above April’s post-pandemic low of 2.3 percent, though it was just under economists’ expectations.

July’s Consumer Price Index report showed an acceleration in “core” prices that strip out volatile food and energy items.

While the overall reading on consumer prices was steady, a measure excluding food and energy categories rose to 3.1%.

U.S. stock futures were slightly higher early in Europe after Tuesday’s inflation reading cemented expectations for the Fed to resume cutting rates.

Gold prices edged higher on Tuesday after U.S. inflation data sustained expectations of Federal Reserve interest rate cuts, while attention turned to other key economic data due this week.