US Inflation Remains Elevated Amid Iran War and Trade Tensions

An inflation measure closely watched by the Federal Reserve remained unchanged in July, indicating that many Americans are still struggling with higher costs.

The Commerce Department's report showed that prices rose 3.7% in July compared to a year earlier, with inflation worsening since the Iran war began in late February when it stood at 2.9%. This rate is noticeably above the Fed's target of 2%.

Stubbornly high prices are shaping up to be a key issue in the midterm elections, particularly as the Iran war keeps gas prices high and President Donald Trump threatens new tariffs on Canada and China.