Central bank could raise interest rates soon if prices keep going up steadily

Americans are sick and tired of inflation.

The main inflation gauge used by the Federal Reserve to set U.S. interest rates rose at a slightly elevated rate in July, leaving it an open question as to whether the central bank will raise interest rates next month.

The personal consumption expenditures, or PCE, index rose a 0.2% last month, the government said Wednesday. That was higher than the 0.1% forecast of economists surveyed by Wall Street.

Over the past year, inflation has risen at a 3.7% pace, unchanged from the prior month. That's well above the Fed's 2% target.

A separate measure of inflation that strips out energy, known as the core rate, also rose 0.2% in July. The year-over-year increase was unchanged at 3.3%

Big picture: The Fed is primed to raise interest rates soon unless inflation slows significantly. The latest PCE report could tilt the Fed toward a hike.

Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open mixed in Wednesday trading

-Jeffry Bartash