Underlying inflation in the U.S. is picking up, but a recent report from the government's Bureau of Labor Statistics (BLS) suggests the Federal Reserve may still cut interest rates. The report, released in July, showed that the Consumer Price Index (CPI), which measures how much people pay for a basket of common goods and services, grew at a modest pace. This was in line with what economists expected. However, the core CPI, which leaves out volatile food and energy prices, increased 0.3% from June. This was the fastest pace of growth since the beginning of the year. This suggests that while overall prices are rising slowly, prices for goods and services beyond gas and groceries are going up a little faster. One thing that surprised many economists was that the cost of goods affected by tariffs didn’t rise as much as feared. This is good news because tariffs can often lead to higher prices for consumers. What This Means for You The report's findings have boosted expectations that the Federal Reserve will lower interest rates when they meet next month. A rate cut would make it cheaper to borrow money for things like mortgages and car loans, which could help stimulate the economy. Why the Report's Credibility Is Now Being Questioned The BLS is an independent, non-partisan government agency that gathers and analyzes economic data. Its reports are highly respected and used by investors, economists, and business owners to make important decisions. However, the agency's credibility is now being questioned. President Donald Trump fired the BLS’s non-partisan commissioner after the agency reported a rise in unemployment. He then nominated EJ Antoni to the post. Antoni, a former chief economist at the conservative Heritage Foundation, is a contributor to the far-right Project 2025 manifesto. This has many people wondering if the BLS's data will continue to be seen as a reliable, unbiased source of information, which could lead to instability in the markets.