Annual inflation in the United States cooled last month yet remained elevated in the latest sign that the pandemic-fueled price surge is gradually and fitfully coming under control.

The report released by the Labor Department on Tuesday indicated that the consumer price index increased by 0.3% between December and January, a slight uptick from the 0.2% growth seen in the previous month. Year-over-year, prices have risen by 3.1%.

This number is lower than the 3.4% reported in December and significantly lower than the peak inflation rate of 9.1% in mid-2022.

The most recent measurement exceeds the Federal Reserve’s goal of 2%, which has become a crucial topic in President Joe Biden’s campaign for a second term due to widespread frustration with inflation.

Core prices, which do not include food and energy, rose by 0.4% in the previous month, an increase from 0.3% in December and a 3.9% increase over the last year. Core inflation is closely monitored as it gives a more accurate indication of future inflation trends. The yearly rate remains unchanged from December.

Officials in the Biden administration point out that inflation has drastically decreased compared to three years ago when it was driven up by supply disruptions caused by the pandemic and substantial government assistance. Additionally, various data indicating future trends indicate that inflation will continue to decrease.

However, despite approaching the Fed’s desired level, a significant number of Americans are frustrated that the average prices are still 19% higher than when Biden assumed office.

The data that was released on Tuesday contains a mix of information that could confirm the concerns of Federal Reserve officials. These officials have expressed satisfaction with the progress in significantly decreasing inflation, but they still want to see more evidence before they feel confident that it will continue to stay at their desired 2% target. Many economists believe that the central bank will likely wait until May or June before making any changes to its benchmark rate, which is currently at a 22-year high of about 5.4.

From March 2022 to July of last year, the Federal Reserve increased its main interest rate 11 times in an effort to combat excessive inflation. This has resulted in significantly higher interest rates for both businesses and individuals, such as those seeking mortgages or auto loans. In the future, when interest rates are lowered, it could potentially lead to lower borrowing expenses for various types of loans.

During the last quarter of the previous year, the economy experienced a surprisingly fast growth of 3.3% per year. Recent indicators suggest that the growth has remained strong in the beginning of this year. Additionally, there was a significant increase in hiring by businesses last month. Surveys of manufacturing companies revealed a rise in new orders in January, while services companies reported an increase in sales.