US wholesale inflation was muted in June, despite expectations for an increase amid the rollout of tariffs. The Producer Price Index, which measures the average change in prices paid to producers, was unchanged from May, keeping the annual rate of wholesale-level inflation at 2.3%.

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.

"Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year," he said, although it remains well below the peaks seen two years ago.

Most US and European share indices slid on Tuesday, as US inflation data indicated President Donald Trump's tariffs could be feeding into the American economy.

U.S. stocks are drifting following some mixed data on inflation and profits at some of the biggest U.S. banks.