US Inflation Remains Elevated Amid Ongoing Trade Tensions

The US Federal Reserve's closely watched inflation gauge has remained elevated in July, reflecting ongoing concerns about rising prices and their impact on the economy.

According to the Commerce Department, the Consumer Price Index (CPI) rose 3.7 percent in July compared to a year earlier, unchanged from June but still above the Fed's target of 2 percent.

The inflation rate has worsened since late February when the Iran war began, with prices increasing by 0.5 percent that month and 0.1 percent in May.

The ongoing trade tensions between the US and other countries, including President Donald Trump's threats to impose new tariffs on Canada and China, are also contributing to higher costs for consumers.

Excluding volatile food and energy categories, core inflation was unchanged at 3.3 percent in July, with prices rising 0.2 percent from June to July.