PCE Index Rises to 3.7% as Services Costs Drive Inflation

The personal consumption expenditures price index, a key inflation gauge watched by the Federal Reserve, remained elevated in July at 3.7% compared to last year's figure.

This is despite gas prices falling partly due to the cost of services such as health care, utilities, and financial services increasing.

The Commerce Department reported that overall prices rose 0.2% from June to July, while core inflation also increased by 0.2% over the same period.