US consumer prices rose in June, according to Labor Department data released Friday. Economists at major banks attributed part of the increase to tariffs feeding through to goods prices as investors weighed the timing of a Federal Reserve rate cut.

The Bureau of Labor Statistics reported that the Consumer Price Index climbed at an annual pace near 3%, above the Fed's 2% target. Core CPI, which excludes volatile food and energy costs, remained sticky, driven by shelter and imported goods prices.

Economists at Goldman Sachs and JPMorgan had forecast a modest monthly gain, warning that import duties introduced during the year would gradually lift the cost of household goods. Automobiles, appliances and apparel were among the categories flagged for tariff-related pressure.

The data complicated the outlook for the Federal Reserve, which recently signalled division over cutting rates. Minutes from the June meeting showed policymakers split between concern over a cooling labour market and persistent inflation. Traders in federal funds futures trimmed bets on a July cut following the release.

A White House spokesperson said the administration remained confident that inflation would ease later in the year. Economists at Bank of America cautioned that tariff effects could keep price pressures elevated into the autumn.