US inflation held at 3.7 percent in July, remaining above the Federal Reserve’s target, according to Al Jazeera. The reading indicates that price pressures in the world’s largest economy have proven persistent rather than easing back toward the central bank’s goal.

Al Jazeera reported that inflation has worsened since the United States and Israel attacked Iran, a development that sent energy prices spiralling. Higher energy costs typically feed through to a broad range of goods and services, keeping overall inflation elevated.

The July figure keeps inflation stuck above the level the Federal Reserve aims to achieve. When inflation stays above target, it complicates the central bank’s decisions on interest rates, as policymakers weigh the need to bring prices under control against other economic considerations.

The link between geopolitical conflict and rising energy prices is a familiar dynamic. Disruptions or fears of disruption in oil-producing regions can push fuel costs higher, and those increases ripple through transport, manufacturing and household budgets.

The report from Al Jazeera did not provide additional detail on specific categories driving the July reading beyond the energy price pressures tied to the conflict involving Iran.