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.

Thursday’s retail sales data suggests that consumers aren’t yet balking at the higher prices, and reflect what big banks, economists, analysts, and retailers have said to describe the current consumer mind-set: Americans are cautious, but resilient.

The Bureau of Labor Statistics reported that the consumer price index (CPI), a popular inflation gauge, increased in June to 2.7% on an annual basis as prices rose for consumers.

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 report on producer prices adds to a mixed picture for inflation as the economy adjusts to the imposition of import tariffs.

The Producer Price Index (PPI) for final demand was flat in June, following a 0.3% rise in May and a 0.3% drop in April.   A 0.3% increase in goo

The producer price index for June was expected to increase 0.2%, according to the Dow Jones consensus estimate.

M/M vs. +0.3% consensus and +0.1% prior, according to data released by the Bureau of Labor Statistics on Tuesday.