U.S. inflation remained steady in April, raising concerns for the U.S. central bank that the elevated pace of price increases may persist longer than anticipated, potentially delaying interest rate cuts.

The personal consumption expenditures (PCE) price index, a key inflation measure for the Federal Reserve, rose by 0.3% in April, matching the increase from March, as reported by the Commerce Department’s Bureau of Economic Analysis on Friday.

Year-over-year, the PCE price index increased by 2.7% in April, the same rate as in March. These figures aligned with economists’ expectations, who had forecasted a 0.3% monthly rise and a 2.7% annual increase. To achieve the Fed’s 2% inflation target, consistent monthly inflation readings of 0.2% are necessary over time.

The Federal Reserve has maintained its benchmark policy rate in the 5.25%-5.50% range for the past 10 months, grappling with stronger-than-expected inflation and labor market data from January to March, following more favorable readings in the fourth quarter of the previous year.

However, earlier this month, April’s job gains and consumer price index (CPI) data, another critical inflation measure, provided some relief. Job growth in the U.S. reached its lowest level in six months, and the CPI increase was less than anticipated.

Since March 2022, the Fed has raised borrowing costs by 525 basis points to curb economic demand. Initially, financial markets expected the first rate cut in March, which was later postponed to June and now to September.

Consumer spending, which constitutes over two-thirds of U.S. economic activity, rose by 0.2% in April, down from a 0.7% increase in March. Revised GDP data released on Thursday indicated that consumer spending slowed to a 2.0% annualized rate in the first quarter, compared to the robust 3.3% rate in the fourth quarter of the previous year.