A key measure of inflation posted the biggest increase in June in four months as the delayed effects of higher U.S. tariffs began to work their way through the economy, raising questions about whether the Federal Reserve will cut interest rates soon.

U.S. inflation increased in June as tariffs boosted prices for imported goods like household furniture and recreation products, supporting views that price pressures would pick up in the second half of the year and delay the Federal Reserve from resuming cutting interest rates until at least October.

The Personal Consumption Expenditures, the Federal Reserve's preferred inflation gauge, ticked higher in June.

Inflation picked up in June, as measured by the Federal Reserve's preferred gauge, reflecting the continued price pressures that make the central bank [cautious about cutting interest rates](

The U.S. Bureau of Economic Analysis, or BEA, announced Thursday that personal income for Americans increased in June, but so did inflation.

The price index was the latest indication that President Trump’s tariffs are beginning to show up in consumer prices.