Wholesale prices were unchanged in June and showed only a mild effect from U.S. tariffs, adding to the growing view that trade wars won’t lead to a big increase in inflation.

With threats of tariffs and talk of inflation, consumers are concerned about rising prices for everyday items such as groceries and clothes.

Federal Reserve Bank of New York President John Williams said Wednesday that monetary policy is in the right place to allow central bankers to monitor the economy before taking their next steps, and he warned that the impact of trade tariffs is only just starting to hit the economy.

A fresh report on Tuesday marked two consecutive months of rising inflation. Consumer prices rose 2.7% in June compared to a year ago, marking a notable surge of price increases as President Donald Trump's tariff policy took hold and some retailers warned they may pass some of the tax burden onto shoppers.

President Trump’s tariffs will affect jobs and economic stability in many countries, and result in lower global growth, according to a top UN trade official.

With the Federal Reserve watching inflation closely, Tuesday's June Consumer Price Index is expected to show some impact from tariffs, with more showing up later in the year. The consensus is for core CPI to rise 3.

The Labor Department’s consumer price index for June showed overall inflation rose 2.7 percent from June 2024. That’s up from a 2.4 percent pace in May.