The Federal Reserve’s preferred inflation gauge showed that price growth eased slightly in April, trending closer to the central bank’s target as economists warn the impact of tariffs could push inflation higher in the coming months.

The Commerce Department on Friday reported that the personal consumption expenditures (PCE) index rose 0.1% on a monthly basis and 2.2% on an annual basis. Those figures were in line with the estimates of economists polled by LSEG.

Core PCE, which excludes volatile food and energy prices, was up 0.1% on a monthly basis in April and 2.5% on an annual basis, also in line with estimates.

Federal Reserve policymakers are focusing on the PCE headline figure as they try to slow the pace of price increases to their target of 2%, though they view core data as a better indicator of inflation. Headline PCE was down from 2.3% in March, while core PCE also declined from 2.6%.

This is a developing story. Please check back for updates.