Inflation fell a tenth of a percentage point to 2.5% for the year ending in January, the Bureau of Labor Statistics reported Friday in an update to the Federal Reserve’s preferred gauge.

The decline in the personal consumption expenditures index from 2.6% the month before was in line with expectations.

Falling inflation is a sign of health for the economy and is helpful to President Donald Trump, who has now been in office for over a month. The report shows that while the Fed will have to continue working to bring down prices, inflation is starting to move in the right direction.

On a month-to-month basis, inflation rose 0.3%.

Inflation was the biggest concern on the campaign trail and, according to some analysts, a major factor in Trump besting Vice President Kamala Harris.

Core inflation, which strips out volatile food and energy prices, rose 2.6% on an annual basis. Core inflation was 0.3% on a monthly basis.

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The more commonly tracked inflation gauge, the consumer price index, rose to 3% in January — still above the Fed’s preferred 2% level.

The Fed finally pivoted to cutting interest rates in September and has since lowered its interest rate target by a whole percentage point. But the Fed appears poised to hold rates where they are now for the near future as inflation continues to still run too hot and GDP and the labor market remain strong.