Inflation Holds Steady Above Target as US Economy Continues to Grow

US inflation remained above the Federal Reserve's target of 2% for the 65th consecutive month in July, according to government data released on Wednesday.

The pause in the decline from a recent peak is likely to intensify the central bank's debate over whether interest rates should be increased or held steady.

Consumer spending decelerated modestly last month, and flatlined against inflation, but personal incomes rose faster than inflation. This could signal an uptick in consumption as the year progresses.