War, Tariffs and AI Are Keeping Pressure on Prices as Inflation Remains Stuck at 3.7%
Consumer prices rose 0.2% in July, holding annual inflation at 3.7% and core at 3.3%, as energy costs and wage stagnation pressure the Federal Reserve.
- On Wednesday, the Bureau of Economic Analysis reported that United States PCE inflation held steady at 3.7%, matching June's rate and highlighting the difficult position Fed policymakers face for next month's interest rate decision.
- The Iran War drives energy prices higher, while new United States tariffs and soaring demand for Computer infrastructure add persistent pressure on prices across the broader economy.
- Consumer confidence fell for the second consecutive month in August, according to The Conference Board; Gasoline prices fell 2.7% from July, while Core prices rose 3.3% year-over-year and small electric household appliances jumped 2.2% in one month.
- Fed minutes show Officials remain deeply divided on the future path of United States inflation, while Ken Kim, senior economist at KPMG, warned that broad relief will take time, strengthening the case for rate increases.
- Policymakers expect PCE inflation to decline to 2.3% in 2027 but do not expect to reach the Fed's 2% goal until 2028; Fed Chair Kevin Warsh will discuss these challenges Friday at the Fed's annual conference in Wyoming.
31 Articles
31 Articles
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War, tariffs and AI are keeping pressure on prices as inflation remains stuck at 3.7%
Inflation remains at 3.7% for the second month, with global conflict, tariffs, and rising demand for technology driving costs higher, according to the Federal Reserve.
US GDP Growth Holds at 1.5% in Q2 as Inflation Remains Elevated
US economic growth remained steady in the second quarter, with the government maintaining its annualized GDP growth estimate at 1.5%, while inflation showed little sign of easing in July, reinforcing uncertainty over the Federal Reserve’s next policy move.
The annual inflation of the United States remained well above the target of 2% of the Fed (Federal Reserve) in July for the 65 ms consecutive, and the pause in the fall in relation to the recent peak induced by the war with the Ir probably contribute to the tense debate of the American central bank on whether the interest rate should be high or maintained. Read more (08/26/2026)
US PCE in July higher than expected at 3.7%, but core PCE matches forecast
US consumer prices rose slightly in July, with the Federal Reserve’s preferred inflation gauge showing that price pressures remain elevated as policymakers weigh the next move on interest rates.The personal consumption expenditures price index increased 0.2% on a seasonally adjusted monthly basis, while the annual inflation rate reached 3.7%, according to the Commerce Department.Both readings were 0.1 percentage point above the Dow Jones consens…
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