Inflation rose in January at the fastest pace in four months, based on the Federal Reserve’s preferred PCE gauge, in a sign price pressures might not return to low prepandemic levels as quickly as hoped. The PCE index rose 0.3% last month, the government said Wednesday. That matched the forecast of economists polled by The Wall Street Journal. The more closely followed core rate that strips out food and energy rose a sharper 0.4%, the largest increase in a year.

The core index is viewed as a better predictor of future inflation.

The uptick in inflation in the PCE report didn’t come as a big surprise. A pair of reports on consumer and wholesale prices that also feed into the PCE index showed sharper increases last month.

The yearly rate of inflation, meanwhile, still fell a few ticks to 2.4% from 2.6%.

The rate of core inflation in the 12 months ended in January slowed to 2.8% from 2.9%.

Fed officials have warned that the road to their goal of stable 2% annual inflation would be “bumpy.” The latest bump suggests the central bank is unlikely to cut interest rates until the late spring or early summer at the earliest.

Fed officials say they want to see more convincing proof that inflation is slowing before the lower rates.

“We still have a ways to go on the journey to sustained 2% inflation,” New York Fed President John Williams said Wednesday.

The Fed’ benchmark short-term interest rate sits at a top end of 5.5%. Wall Street is expecting the first rate cut in June.

Source: PCE shows biggest rise in U.S. inflation in four months