US Inflation Remains Elevated Despite Slight Gas Price Drop

Inflation remains high in the US, despite a slight drop in gas prices. The personal consumption expenditures price index (PCE), a key measure of inflation, rose 3.7% in July compared to last year, matching June's rate.

This is above the Federal Reserve's target of 2%, and a significant increase from February's 2.9%. Core inflation, excluding food and energy prices, was also unchanged at 3.3% in July.

The Commerce Department plans to adjust its method for calculating the cost of services, which may lower measured inflation by 0.2 percentage point. This change will start with next month's figures.