U.S. inflation accelerated in June, according to Commerce Department data released Thursday. The core personal consumption expenditures price index—watched closely by the Federal Reserve—rose 0.3% from May and 2.8% from a year earlier, topping economists’ expectations and marking the highest annual pace since February. Headline PCE, which includes food and energy, also increased 0.3% on the month and 2.6% on the year, up from 2.3% in May. The report landed one day after the Fed kept its benchmark interest rate unchanged, citing uncertainty over the trajectory of prices following the Biden administration’s 145% tariff on Chinese goods that took effect in April. June’s figures extend core PCE’s streak above the central bank’s 2% target to 52 consecutive months and could complicate officials’ deliberations on the timing of any rate cuts. May data, published last month, had shown core PCE running at 2.7% year-on-year with headline inflation at 2.3%, suggesting price pressures were already firming before the latest uptick. Economists are divided on how deeply the tariffs will feed through to consumer costs, but most expect the central bank to await several more readings before altering its policy stance.