US Inflation Surges to 3.7 Percent in July, Exceeding Fed Target

The US personal consumption expenditures (PCE) price index rose 3.7 percent in July from a year earlier, exceeding the Federal Reserve's 2 percent target.

The Commerce Department reported that the PCE price index climbed 3.7 percent year-on-year and 0.2 percent from the previous month, both of which surpassed Dow Jones consensus forecasts by 0.1 percentage point.

Core PCE prices, excluding volatile energy and food costs, increased 3.3 percent from a year earlier but remained in line with analyst expectations.