Key inflation gauge remains elevated during Iran conflict and ongoing US trade fights - AP News
A key inflation gauge monitored by the Federal Reserve remains elevated at 3.7%, driven by service costs and geopolitical tensions. The economic data is becoming a central theme in the upcoming midterm elections.
Why it matters
Persistent inflation impacts consumer purchasing power and serves as a critical political barometer for the current administration's economic performance.
By CHRISTOPHER RUGABER Updated [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year] Leer en español --> Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. --> Share
WASHINGTON (AP) — An inflation measure closely watched by the Federal Reserve stayed elevated last month in the latest sign that many Americans are still struggling with higher costs .
Stubbornly high prices are shaping up to be a key issue in the midterm elections, now just 10 weeks away, particularly as the Iran war keeps gas prices high , President Donald Trump is threatening new tariffs on Canada and China , and spending on AI infrastructure has pushed up the cost of computers, gaming consoles, and semiconductors.
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