Fed's Inflation Gauge Stuck at 3.7% as Gas Prices Soar

The Federal Reserve's closely watched inflation measure remained unchanged in July at 3.7%, marking its third consecutive month at this level. This indicates that many Americans are still struggling with higher costs, particularly since the US and Israel attacked Iran in late February.

Inflation has worsened since then, rising from 2.9% to its current rate, which is noticeably above the Fed's target of 2%. The stubbornly high prices have become a key issue in the midterm elections, now just 10 weeks away.

The new inflation data is unlikely to resolve a split at the Federal Reserve, where most officials are willing to hold interest rates steady to see if inflation can cool on its own. However, many Fed officials have supported raising rates to slow borrowing and spending to combat higher prices.