US Inflation Remains Sticky in July; 2nd-Quarter GDP Unrevised at 1.5 Percent

Annual US inflation, as measured by the Personal Consumption Expenditures (PCE) Price Index, unexpectedly held steady at 3.7% in July, remaining above the Federal Reserve's 2% target for the 65th consecutive month. This figure was unchanged from June and exceeded economists' forecasts of 3.6%. On a monthly basis, PCE rose 0.2% in July after a 0.1% decline in June. Additionally, the Commerce Department's Bureau of Economic Analysis (BEA) maintained its estimate for second-quarter annualized gross domestic product (GDP) growth at 1.5%. The persistent inflation is likely to intensify the Federal Reserve's debate on future interest rate decisions.