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](

A key measure of inflation posted the biggest increase in four months in June 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.

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.