Inflation Gauge Stays Elevated Despite Declining Gas Prices

The personal consumption expenditures price index, a key inflation gauge watched by the Federal Reserve, stayed elevated in July at 3.7% compared to last year, unchanged from June.

This marks the second consecutive month of flat inflation despite declining gas prices, as the cost of services such as health care, utilities, and financial services increased.

The Commerce Department plans to adjust its calculations for some services starting next month, which could lower measured inflation by 0.2 percentage points or more.