US Inflation Stuck at 3.7%, Driven by War, Tariffs, and AI Demand

Inflation in the US remains stuck at 3.7% for the second consecutive month, according to the Commerce Department's latest personal consumption expenditures report.

The Federal Reserve identifies three major sources of price pressure: the war with Iran, tariffs, and rising demand for technology driving costs higher.

Rapid price increases for computers and software likely reflect soaring demand for semiconductors used in data centers and other AI infrastructure.