Key inflation gauge remains elevated during Iran conflict and ongoing US trade fights

The briefing

The Commerce Department reported that the Personal Consumption Expenditures (PCE) price index rose 3.7% in July compared to the previous year, remaining unchanged from June and above the Federal Reserve's 2.9% target prior to the U.S.-Israel conflict. Core inflation also stayed at 3.3%, prompting speculation on how the Fed will adjust interest rates. Meanwhile, consumer sentiment remains gloomy as inflation-adjusted incomes rose just 0.2% over the past year.