Inflation Remains High Despite US Fed Target

The Commerce Department's latest report shows that inflation remains high in the United States. The Personal Consumption Expenditures (PCE) price index, closely watched by the Federal Reserve, was unchanged last month and still rose 3.7% in July compared to a year earlier.

This marks the same rate as June and is noticeably above the Fed's target of 2%. Since the US and Israel attacked Iran in late February, inflation has worsened, increasing from 2.9% at that time.

The stubbornly high prices are shaping up to be a key issue in the midterm elections, now just 10 weeks away.