The Globe and Mail reports in its Thursday, Aug. 27, edition that U.S. inflation remained steady in July, staying above the Federal Reserve's 2-per-cent target for the 65th month. A Reuters dispatch to The Globe reports that this pause in decline from a recent peak may intensify the debate on whether to raise or maintain interest rates. The Personal Consumption Expenditures Price Index increased 3.7 per cent in the 12 months through July, unchanged from June. Economists had forecast a reading for PCE, which the Fed uses to set its target, of 3.6 per cent. The month-over-month figure also came in higher than expected at 0.2 per cent in July after falling 0.1 per cent in June, which had been the weakest reading since April, 2020. Economists polled by Reuters had forecast a 0.1-per-cent increase. Excluding energy and food prices, so-called core PCE held steady at 3.3 per cent on the year while rising to 0.2 per cent on the month from 0.1 per cent in June. The better-than-expected headline boosted expectations for a potential Fed interest rate hike next month. Fed funds futures indicated a 42-per-cent probability of a rate increase at the Sept. 15-16 meeting, up from 36 per cent beforehand.