Central bankers prefer the Personal Consumption Expenditures price index instead of the US CPI data to gauge inflation pressure in the economy.

June's uptick in consumer prices likely gives the Fed room to stay on hold as uncertainty over tariffs clouds the timing of its next rate cut, according to economists.

By Howard Schneider WASHINGTON (Reuters) -Rising prices across an array of goods from coffee to audio equipment to home furnishings pulled inflation higher in June in what economists see as evidence of the Trump administration's increasing import taxes passing through to consumers.

Inflation Insights LLC President Omair Sharif pointed out that excluding cars, core goods prices climbed 0.55% in June — the biggest monthly advance since November 2021. “Today’s report showed that tariffs are beginning to bite,” he said in a note.

Prices rose by 2.3% over the 12 months through May, according to the personal-consumption expenditures price index, a reacceleration from 2.1% a month earlier. Explore Our Brands. WSJ;

New federal data showed that inflation edged up in May, but U.S. prices show only modest impact from U.S. tariffs.

But the personal consumption expenditures price index didn’t swing much from last month. And it’s unclear when or if Americans will feel a big impact of President Donald Trump’s tariffs at ...

The U.S. is expected on Tuesday to report that rising costs for imported goods lifted overall consumer prices in June, kicking off what might be several months at least of such increases and giving Federal Reserve officials highly awaited data on whether the Trump administration's tariffs are boosting inflation.