US Inflation Stays High Despite July Decline

The personal consumption expenditures price index (PCE), closely watched by the Federal Reserve, showed that inflation remained high in July at 3.7% compared to a year ago, the same as June.

This measure of inflation has worsened since the US and Israel attacked Iran in late February, when it stood at 2.9%, which is noticeably above the Fed's target of 2%.

Excluding volatile food and energy categories, core inflation was also unchanged at 3.3% in July.

The Commerce Department plans to adjust its measurements for financial advice and software prices next month, which could lower measured inflation by 0.2 percentage point or so.