Fed's Key Inflation Gauge Hits 3.7%, Defying Target

The Federal Reserve's closely watched inflation measure remained stagnant in July, indicating that many Americans continue to struggle with higher costs.

According to the Commerce Department, prices rose 3.7% in July compared to the same month last year, marking a sharp increase from February when they stood at 2.9%. This uptick is particularly concerning as it surpasses the Fed's target of 2% inflation rate.

The ongoing tensions between the US and Iran, including the recent war, have contributed significantly to the surge in gas prices, further exacerbating the inflation issue.