A new report found inflation on the rise in June, another indicator of the affect Donald Trump's tariffs are having on the US economy.

Critics of President Trump's tariff policies have been waiting for the import taxes to raise the inflation rate. That effect may be beginning.

Tariffs contributed modestly to the rise of inflation last month, analysts told ABC News, citing the price hikes in product categories made up primarily of imports. But, they added, overall price increases owed largely to a rise in housing and food products with little connection to tariffs.

U.S. equity funds again came under selling pressure through the week to July 16, dampened by worries over President Donald Trump's tariff rhetoric and the buildup in inflationary pressure, potentially keeping the Federal Reserve cautious about a premature rate cut.

Inflation is moving higher and the impact of tariffs are only beginning to show up in government data, likely keeping interest rates on hold.

New data showing price increases last month could foreshadow even higher costs if the president imposes steep tariffs on Aug. 1.

The case for a U.S. interest rate cut remains unresolved as Federal Reserve officials head into their policy meeting later this month, with data showing fresh signs of higher inflation and President Donald Trump intensifying his demands for lower borrowing costs.

A number of factors, including a lack of significant gains in auto prices, are masking the extent of the shift.

The prices for food at home rose 0.3 in June, while food away from home, meaning restaurants, ticked up 0.4% on a monthly basis. Notably, the Trump administration has recently imposed a 17% tariff on Mexican tomatoes. The energy index edged up 0.9% in June, as gasoline prices jumped 1% over the month but shed 7.9% for the year.

Consumers blame companies for exploiting the disruption caused by tariffs. They believe companies are raising prices and reducing quality to boost profits.