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.

Excluding food and energy, core PCE also rose 0.3% for the month and was at 2.6% annually. Fed officials more closely follow the core measure as a better indicator of longer-term trends. The numbers all were in line with Dow Jones consensus estimates and likely keep the central bank on hold for the time being regarding interest rates.

The Federal Reserve’s preferred inflation gauge cooled as expected in January; however, the good news came with a red flag for the US economic engine: Consumers pulled back their spending by the most in nearly four years.