US inflation remained elevated in July, with the annual inflation rate holding at 3.7 percent, well above the Federal Reserve’s 2 percent target.

Inflation has increased significantly since the US and Israel attacked Iran in late February, which contributed to higher energy prices and broader economic pressures.

The personal consumption expenditures price index reached a three-year high of 4.1 percent in May before easing in the following months.

Higher fuel and other costs continue to put pressure on American consumers and complicate efforts to bring inflation back under control, Al-Jazeera has reported.

The persistent inflation could also make it more difficult for the Federal Reserve to lower interest rates as policymakers weigh the strength of the economy against rising prices.