Inflation accelerated in June as President Trump’s tariffs started to leave a bigger imprint on the economy, keeping the Federal Reserve on track to hold interest rates steady when policymakers next meet this month.

Consumer prices in the New York area, including Long Island, rose at a faster pace in June than in May, driven in part by higher costs for child care, housing and groceries, such as meat and eggs.

The June CPI report shows that inflation is accelerating, but at a pace that's in line with economists' expectations. The latest Consumer Price Index (CPI) report indicated a slight impact on inflation from President Donald Trump's tariff policies, although the acceleration was in line with what economists expected.

CPI data shows headline and core inflation in line with expectations. Check out my thoughts on financial markets' reaction to CPI data.

Dow falls 300 points, S&P 500 flat and Nasdaq climbs after June CPI report; JPMorgan tops estimates Investors are digesting important inflation data in the U.S

The CPI rose 0.3% month-over-month in June, accelerating from May’s 0.1% pace. Year-over-year inflation also jumped to 2.7%, up from 2.4% in May. Core CPI, which excludes food and energy, rose 0.2% in June and came in at 2.9% annually — signs that underlying inflationary pressure remains sticky.

June’s U.S. CPI print showed that there is evidence of inflation pressures in the product categories that are most exposed to tariffs, said Parker Ross, global chief economist at Arch Capital Group. Household furnishings and supplies saw prices jump by 0.