Prices for goods rose in June as businesses passed the cost of tariffs on to customers, according to the Federal Reserve's preferred measure of inflation.

A key measure of inflation posted the biggest increase in four months in June as the delayed effects of higher U.S. tariffs began to work their way through the economy, raising questions about whether the Federal Reserve will cut interest rates soon.

Prices rose 2.6% in June compared with a year ago, the Commerce Department said, up from an annual pace of 2.4% in May.