Inflation held at 3.7% for the year ending in July, the Bureau of Labor Statistics said Wednesday morning in an update to the personal consumption expenditures index, which is the Federal Reserve’s preferred inflation gauge.

The stubbornly high inflation shows that price pressures continue to pose a major threat to the economy, as well as to the political fortunes of President Donald Trump and Republicans, who are running low on time to turn around voters’ dissatisfaction before the midterm elections. The report was essentially in line with expectations.