U.S. consumer prices likely picked up in June, potentially marking the start of a long-anticipated, tariff-induced increase in inflation that has left the Federal Reserve cautious about resuming its interest rate cuts.

Consumer inflation likely accelerated in June, as the Trump administration's tariffs start to push up prices. The Labor Department's consumer-price index for last month is due at 8:30 a.m. ET. Year-over-year inflation likely picked up to 2.

Data for June are expected to make it clear that progress in bringing down the inflation rate is over for the foreseeable future as higher tariffs push up prices. While the consumer price indexes for April and May showed limited effects from tariffs,