Inflation moved up for the third month in a row, rising two-tenths of a percentage point to 2.9% for the year ending in December, adding to signs that the Federal Reserve may have to keep interest rates higher for longer.

The increase in the consumer price index is unhelpful for President-elect Donald Trump, who will soon inherit the economy from President Joe Biden.

On a month-to-month basis, inflation rose 0.4%.

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

Core CPI inflation, which strips out volatile food and energy prices, fell slightly to 3.2% for the year ending in December.

Officials at the Fed are watching the inflation numbers closely to determine whether to lower interest rates further to spur more economic activity or to forgo further rate cuts to try to tamp down inflation.

The Fed cut interest rates at its last two meetings, although now, most investors think the central bank will hold off on cutting well into 2025.

The Fed’s goal is 2% annual inflation.

The Fed looks at another inflation gauge, the personal consumption expenditures index, when analyzing its next steps. The PCE index for November showed PCE inflation rising to 2.4%. And core inflation is at a 2.8% year-over-year rate.

The most recent jobs report bolstered perceptions that the Fed is going to hold off on cutting rates in the near term. That is because the report came in hotter than expected, meaning that the Fed has more leeway to hold rates higher because the jobs market isn’t starting to deteriorate.

The economy added 256,000 jobs in December, and the unemployment rate fell a tenth of a percentage point to 4.1%, the Bureau of Labor Statistics reported last week.

The interplay between Trump and the Fed will be one to watch heading into 2025.

While in office before, Trump criticized Fed policy, blasting the central bank for raising interest rates too quickly. It was reported Trump had private discussions about firing Fed Chairman Jerome Powell, although Powell said at the time, and has recently reiterated, that he doesn’t believe Trump has the authority to fire him.

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In 2019, Trump wrote that his “only question is, who is our biggest enemy” — Powell or Chinese President Xi Jinping.

Last month, Trump said he doesn’t have plans to fire Powell this time around.