Inflation rose two-tenths of a percentage point to 2.6% for the year ending in December, the Bureau of Labor Statistics reported Friday in an update to the personal consumption expenditures index, the Federal Reserve’s preferred gauge.

The rise in inflation was in line with expectations.

The increase is unwelcome news for the economy and President Donald Trump as he enters office. This is the first inflation report since he has been sworn in and shows the Fed will have to continue working to bring down prices and that inflation could be a lingering problem in the new administration.

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, remained at 2.8% on an annual basis. Core inflation was 0.2% on a monthly basis.

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The more commonly tracked inflation gauge, the consumer price index, rose to 2.9% in December. Inflation 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.