The US Federal Reserve has, so far, held interest rates as it assesses whether inflation will rise because of the levies despite pressure by President Donald Trump to cut borrowing costs. Underlying inflation, which strips out food and energy costs, rose by 3.1% which is the fastest pace in six months, according to Tuesday's data.

Falling gas prices helped keep overall inflation tame in July; however, a broader array of products got even more expensive last month, showing that President Donald Trump’s expansive tariffs are being passed along to consumers.

According to the Bureau of Labor Statistics, U.S. consumer prices rose 2.7% in July compared with a year earlier, matching the annual pace recorded in June. So, what does this mean