Inflation Holds Steady at 3.7% Amid Ongoing Trade Tensions

The Federal Reserve's closely watched inflation measure remained unchanged in July, rising to 3.7% compared to the same month last year. This is a worrying trend for many Americans who are still struggling with higher costs.

Since the US and Israel attacked Iran in late February, inflation has worsened, increasing from 2.9%. The current level of 3.7% is notably above the Fed's target of 2%. Some experts point to the ongoing trade tensions between the US and its trading partners as a contributing factor.

Core inflation, which excludes food and energy prices, was also unchanged at 3.3% in July. This follows a decline from 2.6% before President Donald Trump imposed tariffs in April.