Cost of core consumer goods and services increased slightly in July, Commerce Department

The cost of consumer goods and services increased slightly in July, according to a Commerce Department report released Wednesday.

The report, the personal consumption expenditures price index, is considered the Federal Reserve’s main gauge for inflation, which impacts how it sets interest rates.

The cost of goods and services last month increased a seasonally adjusted 0.2%, putting the annual inflation rate at 3.7%, according to the report.

The increase was in line with forecasts, according to CNBC.com.