US Inflation Stalls at 3.7 Percent, Fueling Rate Hike Speculation

Inflation in the US remains above target for the 65th straight month, according to data released by the Bureau of Economic Analysis. The Personal Consumption Expenditures (PCE) Price Index was 3.7 percent in the 12 months through July, unchanged from June.

This figure is well above the Federal Reserve's 2 percent target and has been a point of contention for policymakers. Economists had forecast a reading of 3.6 percent, but the actual number came in higher at 3.7 percent.

The month-over-month figure also increased to 0.2 percent after falling 0.1 percent in June. This rise was more than expected, with economists forecasting a 0.1 percent increase.