US Inflation Holds Steady at 3.7% Amid Ongoing Trade Tensions

US inflation remained stubbornly high in July, holding steady at 3.7% annually for the 65th consecutive month, far above the Federal Reserve's 2% target.

This stagnation is likely to fuel debate among central bank officials over whether to raise or keep interest rates unchanged, with some arguing that tighter policy is needed to combat inflation.

The Personal Consumption Expenditures Price Index (PCE) rose 0.2% in July on a month-over-month basis, exceeding economists' forecasts, and continues to be influenced by the ongoing Iran-US conflict.

A new wave of import tariffs has also been implemented, with trade negotiations between the US and Canada having broken down, leading to additional pressures on goods prices.