The Federal Reserve’s preferred measure of underlying U.S. inflation showed signs of picking up in May toward the central bank’s goal, potentially raising the bar for an interest-rate cut when policy makers meet at the end of next month.

The core personal consumption expenditures price gauge, which excludes food and energy, rose 0.2% from the prior month and 1.6% from a year earlier, according to a Commerce Department report Friday. The annual gain was just above the median estimate in a Bloomberg survey, and the three-month annualized increase advanced to about 2%, a five-month high.

Purchases, which make up the majority of the economy, rose 0.4% from April, slightly below estimates, following an upwardly revised 0.6% gain in April. Personal income increased 0.5% for a second month, topping forecasts, though wages and salaries climbed at the slowest pace in six months.

While Friday’s figures alone are unlikely to spur the Fed to act one way or another, a sustained flow of positive economic news in coming weeks could persuade policy makers to keep interest rates unchanged, despite pressure from financial markets and President Donald Trump.

Stronger consumer spending and higher incomes should support future growth as the expansion becomes the longest in U.S. history in July. Stocks rose Friday, set to cap the best month since January. Treasuries fell and the dollar weakened.

“The trend seems to be getting back toward the pace that the Fed will be more comfortable with,” said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC. “The question really is how patient they want to be.”

There are other important indicators still to come before the Fed’s next meeting on July 30-31, including employment data and developments from the G20 meetings between the U.S. and China in Japan.

Earlier this week, Powell said recent data show that the inflation undershoot “may be more persistent than we had hoped.” In May, he said officials viewed muted inflation as likely transitory.

Fed officials in their quarterly forecasts last week lowered their outlook for headline PCE inflation to 1.5% this year and to 1.8% for core PCE prices.

This article was provided by Bloomberg News.