A key inflation gauge closely watched by the Federal Reserve remained elevated last month, in the latest sign that many Americans are still struggling with higher costs. This was reported by Qazaqyia.kz citing Associated Press.
The Commerce Department's Wednesday report showed that prices rose 3.7% in July compared with a year earlier, the same as June. Inflation has worsened since the U.S. and Israel attacked Iran in late February, when it stood at 2.9%. It's noticeably above the Fed's target of 2%.
Wednesday's figures are from the personal consumption expenditures price index, a separate gauge from the more widely followed consumer price index, which was reported earlier this month. The PCE index is running hotter than the CPI, partly because it puts much less weight on rental costs, which have been cooling steadily in recent months.
Federal Reserve Chair Kevin Warsh said Friday that inflation is still too high and suggested the central bank may have to raise interest rates in the coming months to bring it down, a clearer signal than he had sent previously about his economic outlook.
Warsh made the remarks in his first high-profile speech at the Fed's annual conference at Jackson Hole, Wyoming. He also met with Bank of England Governor Andrew Bailey and Bank of Canada Governor Tiff Macklem.
The economy, inflation and how those forces could impact the lives of Americans were front and center over the past week. Trips to the grocery store and gas station are more painful than they were last year, and rising costs are impacting the decisions of both households and businesses.