Global Conflict, Tariffs, and AI Fuel Persistent Inflation

Inflation has remained stuck at 3.7% for the second consecutive month, according to the Commerce Department's latest personal consumption expenditures report.

The Federal Reserve's recent Monetary Policy Report identified three major sources of price pressure: the war with Iran, tariffs, and rising demand for technology driving costs higher.

Rising energy prices are one factor, but gasoline and other energy goods actually fell 2.7% from June, although they were approximately 25% more expensive than in July 2025.

Economist Ken Kim warns that the conflict in the Middle East may not be resolved soon, which could continue to drive up prices.