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

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.