Inflation Ticks Up Despite Unchanged Core Prices

US inflation remains stubbornly high, with prices rising 3.7% in July compared to a year earlier, unchanged from June, and above the Federal Reserve's target of 2%

The latest figures follow a pattern of worsening inflation since the US and Israel attacked Iran in late February

Core inflation, excluding food and energy, was also unchanged at 3.3% in July, a trend that has persisted despite President Donald Trump imposing tariffs in April on imports from various countries, including Canada and China

The ongoing trade tensions and the recent conflict with Iran have pushed up gas prices, which rose to $4.10 per gallon in August, according to the AAA

While consumer spending was healthy and businesses increased investment in AI infrastructure, Americans may be growing more cautious due to high inflation, with adjusted spending unchanged in July