Inflation rose 3.7% in July in Fed’s preferred gauge, reflecting affordability woes

The Bureau of Labor Statistics and Bureau of Economic Analysis reported that the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, remained flat at 3.7 percent for the year ending in July. The index ticked up 0.2 percent last month. Excluding volatile food and energy prices, inflation rose 3.3 percent year-over-year. These stagnant figures indicate that persistent price pressures continue to pose a significant threat to the overall economy.