US inflation remains 3.7% in July, PCE flat from June
US inflation didn't budge in July, still at 3.7% in July, according to the Commerce Department.
That's quite a bit higher than the Federal Reserve's 2% goal, and economists were hoping it might dip a little.
The Fed's go-to inflation measure (the PCE price index) also stayed flat from June.
Rate hikes possible amid Canada tariffs
Because prices keep rising faster than the Fed wants, some officials are pushing for higher interest rates to cool things down.
The Fed kept its main rate steady last month, but might hike it again if inflation doesn't ease up.
Meanwhile, trade tensions with Canada just got worse after talks broke down on Friday (leading to $20 billion in new tariffs), and US economic growth is stuck at 1.5%.
All this makes it tough for policymakers to balance fighting inflation without slowing the economy even more.