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 Federal Reserve’s preferred measure of underlying inflation increased in June at one of the fastest paces this year while consumer spending barely rose, underscoring the dueling forces dividing policymakers over the path of interest rates.

The Federal Reserve's preferred measure of underlying inflation, the so-called core personal consumption expenditures price index, rose 0.3% from May and advanced 2.8% on an annual basis. Inflation-adjusted consumer spending edged up last month after declining in May and weekly jobless claims rose less than expected to 218.

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](