US Inflation Remains Elevated Amid Iran War and Trade Fights

Recent inflation figures show that prices rose 3.7% in July compared to last year, remaining above the Federal Reserve's target of 2%. This is despite efforts by the Fed to control inflation, which has worsened since the Iran war began in late February.

The Commerce Department's report on Wednesday showed that core inflation, excluding volatile food and energy categories, was also unchanged at 3.3% in July. Some Fed officials have suggested that core inflation running at about 0.2% a month would be a reassuring sign that inflation is heading back to the 2% target.

However, gas prices have rebounded this month, which will likely push up inflation when the August figures are reported next month. This has raised concerns among Fed officials that higher rates may be necessary to get price increases under control.