US core inflation rose to 2.9% in July, highest since February, despite a Fed target of 2%.

US core inflation, excluding food and energy, hit 2.9% in July, the highest since February, marking an increase from 2.8% in June. Overall prices rose 2.6% compared to the previous year. Despite elevated inflation, consumer spending increased by 0.5% in July, fueled by a 0.4% rise in personal income. The Federal Reserve, which aims to keep inflation at 2%, may be hesitant to cut interest rates due to these figures.