US Inflation Holds Steady at 3.7 Percent Amid Debate Over Interest Rates

US inflation remained steady in July at 3.7 percent above the Federal Reserve's target of 2 percent, marking the 65th consecutive month it has been above that mark.

The Personal Consumption Expenditures Price Index increased by 0.2 percent on a month-over-month basis, while economists had forecasted a 0.1 percent decline.

This is despite the recent Iran-war-induced peak in energy prices, which had shot to a three-year high of 4.1 percent in May and had been expected to ease with the conflict's waning intensity.

However, inflation remains above target, and the sluggish pace of improvement may not be enough to mollify a growing minority of Federal Open Market Committee members who argue for tighter policy to bring it back down to 2 percent.