Inflation increased in June and moved further away from the Federal Reserve's target rate as central bank policymakers prepare to meet later this month amid President Donald Trump's calls for interest rate cuts.

The Bureau of Labor Statistics on Tuesday said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.3% in June compared with last month, while it was up 2.7% on an annual basis. Those figures were slightly higher than the estimate of economists polled by LSEG.

Both marked accelerations from last month, when the monthly increase was 0.1% and the annual figure was 2.4%.

So-called core prices, which exclude more volatile measurements of gasoline and food to better assess price growth trends, were up 0.2% from the prior month and 2.9% from a year ago. Those figures were slightly cooler than economists' expectations. As with the headline number, the core numbers ticked higher compared with May, when inflation rose 0.1% on a monthly basis and 2.8% on an annual basis.

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