US Inflation Gauge Remains Elevated Amid Ongoing Trade Fights

WASHINGTON (AP), The personal consumption expenditures price index, a key inflation gauge closely watched by the Federal Reserve, remained elevated last month. This is the latest sign that many Americans are still struggling with higher costs due to stubbornly high prices.

The inflation measure stayed at 3.7% in July compared to the same period last year, the same as June. Inflation has worsened since the U.S. and Israel attacked Iran in late February, when it stood at 2.9%. It's noticeably above the Fed's target of 2%.

Core inflation was also unchanged at 3.3% in July, excluding food and energy categories. This is a significant concern for the Federal Reserve as some officials have said that core inflation running at about 0.2% a month would be a reassuring sign that inflation is heading back to the 2% target.

The government plans to change the way it calculates the cost of some services starting with next month's figures, which could lower measured inflation.