Recent price data released on Thursday indicates inflation continued to impact consumer wallets in April, which may lead the Federal Reserve to maintain a wait-and-see approach until the current wave of price pressures subsides.

According to a report from the U.S. Department of Commerce, the seasonally adjusted Personal Consumption Expenditures Price Index increased by 0.4% month-over-month in April, bringing the annual inflation rate to 3.8%. Economists surveyed by Dow Jones had anticipated a monthly increase of 0.5% and an annual rise of 3.8%, respectively.

Excluding the volatile food and energy categories, the core PCE Price Index rose 0.2% for the month and 3.3% from a year ago. Expectations had been for a 0.3% monthly increase and a 3.3% annual increase.