Retail sales in U.S. rise a solid 0.5% in July from June as shoppers appear to shrug off tariff pressures.Reserve’s 2% target.

On a monthly basis, prices rose 0.2% in July, down from 0.3% the previous month, while core prices ticked up 0.3%, a bit faster than the 0.2% in June.

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

Many businesses are also likely still absorbing much of the cost of the duties. The consumer price figures likely reflect some impact from the 10% universal tariff Trump imposed in April, as well as higher duties on countries such as China and Canada.

But that may change. U.S. wholesale inflation soared unexpectedly last month, signaling that Trump’s taxes are pushing costs up and that higher prices for consumers may be on the way.

The Labor Department reported Thursday that its producer price index — which measures inflation before it hits consumers— rose 0.9% last month from June, biggest jump in more than three years. Compared with a year earlier, wholesale prices rose 3.3%. The figures were much higher than economists had expected.