Inflation Holds at 3.7% as Prices Stay Elevated

The Commerce Department reported Wednesday that a key inflation gauge closely tracked by the Federal Reserve held steady last month, with prices up 3.7% from a year earlier — unchanged from June. The report is the latest sign that many Americans are still grappling with elevated costs despite repeated assurances from Washington that inflation was cooling. According to the Commerce Department, price growth has climbed since February, when the annual rate stood at 2.9%, and remains well above the Fed's 2% target. The persistent readings raise fresh questions about the central bank's ability to tame prices and could complicate its path toward interest rate cuts, officials say, as households continue to feel the squeeze at the grocery store, gas pump and beyond.