Headline inflation hit 3.7% in July — the highest year-over-year increase since 2011
The result was down slightly from May's high
The main concern is that the Fed will end up responding too late and too aggressively to high inflation
Ultra-low interest rates will stay in place until inflation “durably” reaches its 2% target
Research suggests that temporarily overshooting inflation has economic benefits
Price rises will likely prove temporary, a new report from the Bank for International Settlements argues
Higher prices will be temporary, the central bank says
The Fed chair signalled no imminent change to ultra-low interest rates
The central bank expects inflation to run above 3% for the rest of the year
The increase has heightened concerns that the Fed might introduce rate hikes earlier than expected