The U.S. stock market on Tuesday rose toward records after data suggested inflation in July was a touch better than economists expected.

For investors, the July CPI print was just right, as it raised the odds of a rate cut at the next Fed meeting while showing that inflation isn't spiraling.

Inflation ticked higher in July as investors stay alert to how much President Trump’s tariffs are starting to affect consumer costs.

The figures suggest that slowing rent increases and cheaper gas are offsetting some impacts of President Donald Trump’s sweeping tariffs.

US inflation held steady in July as lower energy costs offset price rises for coffee and tools. The latest official figures showed consumer prices rose 2.7% in the year to July but underlying figures - which are seen as a better indicator of economic trends - show that inflation ticked up to the highest level since February.

Inflation remained elevated last month as President Trump's tariffs continued to make their way into the prices that consumers pay. The average cost of living in July was up 2.7%.

The report is the first major economic indicator report since Trump fired the the chief statistician for the Bureau of Labor Statistics

Inflation didn’t rise as much as expected last month — but a measurement of underlying price hikes shows a pickup in tariff-related pressures.