The next major U.S. inflation report is set to arrive on Tuesday in the form of the consumer-price index for June, and will inform investors as to whether President Donald Trump’s tariff wars with other countries have had a sizable impact on inflation.

Both the S&P 500 (.SPX) and Nasdaq (.IXIC) - and by extension, MSCI's world equities index (.MIWD00000PUS) - retreated from record peaks after traders shaved back bets of U.S. rate cuts this year as prices rose for things such as coffee and couches, while staying steady for tariff-exempted (for now) items such as cars.

Rating agency Crisil, in its latest research report, said that the consumer price index (CPI)-based inflation is expected to average four per cent this financial year, as compared to 4.6 per cent last fiscal.

The core CPI, which excludes food and energy prices, climbed 0.7 percent year-on-year in June, up 0.1 percentage points compared to the rise registered in May, according to data released by the National Bureau of Statistics this month.

The Consumer Price Index (CPI) rose 1.9% on a year-over-year basis in June, up from a 1.7% increase in May. Headline inflation grew at a faster pace, as gasoline prices fell to a lesser extent in June (-13.

The consumer price index for June is expected to show that Trump tariffs began to nudge inflation higher last month.

Leading economists react to June’s Consumer Price Index report, which showed that inflation was largely in line with expectations, while speculating on what this means for Federal Reserve policy and growing tariff-related pressures.

Consumer prices in the New York area, including Long Island, rose at a faster pace in June than in May, driven in part by higher costs for child care, housing and groceries, such as meat and eggs.