Federal data shows that inflation held fairly steady in July, defying fears of a sharp tariff-driven spike in consumer prices and good news for President Donald Trump, who is pushing for the Federal Reserve to slash interest rates.

The U.S. Bureau of Labor Statistics said its Consumer Price Index (CPI) measure of inflation increased by 0.2 percent on the month in July, a little slower than June’s 0.3 percent reading.

Annually, CPI inflation rose by 2.7 percent in July, the same reading as the previous month.

Core inflation—a measure widely watched by economists, which strips out volatile food and energy prices—rose to 3.1 percent in July, up from 2.9 percent.

So far, an increasingly divided Federal Reserve’s Board of Governors has resisted cutting rates to wait for more data over the summer on the impact of tariffs on consumer prices.

This is a breaking news story. Updates to follow.