The central bank’s preferred inflation measure, released on Friday, climbed 2.5 percent in January from a year earlier, slightly lower than the previous reading of 2.6 percent but still well above the Fed’s 2 percent target. On a monthly basis, prices increased 0.3 percent, in line with December’s pace.

Inflation rose 2.5% over the year in January compared to 2.6% in December, marking the first decrease in four months.

A key price gauge declined last month, a sign that inflation may be cooling though stiff tariffs threatened by the White House threaten that progress. Yet data released Friday by the Commerce Department also showed that Americans cut their spending last month 0.

A key price gauge declined last month, a sign that inflation may be cooling though stiff tariffs threatened by the White House threaten that progress