#PCEInflationWatch The Federal Reserve’s preferred inflation measure accelerated slightly in December, as price growth remains stubbornly above the central bank’s goal.

Fed policymakers are on hold with interest rates until the inflation picture improves.

The personal consumption expenditures, or PCE, price index rose 0.3% in December and was up 2.6% from a year earlier, according to data from the Bureau of Economic Analysis on Friday. That matched expectations and followed a 0.1% uptick in November and 0.2% in October.

A spike in energy prices helped to lift the headline PCE price index in December. The combined cost of gasoline, electricity, and other energy goods and services jumped 2.7% during the month—but was still down by 1.1% from a year earlier.

December’s energy surge aside, services prices—which are heavily influenced by labor costs and housing—remain the driver of too-high inflation. For instance, separate data from the Bureau of Labor Statistics on Friday showed that employment costs rose 3.8% year over year in the fourth quarter, compared with the third quarter’s 3.9% pace.