According to recent data, consumer inflation in the U.S. is generally weakening, which strengthens expectations of further slowing of the rate dynamics by the Federal Reserve, but at the same time, inflation remains above the Fed’s 2% target, which does not yet give full hope of easing the central bank’s course, writes Business Insider.

Bank officials are keeping a close eye on prices, excluding volatile elements such as energy and food. The core inflation rate (CPI) was 0.3% month-over-month in December, up from 0.2% in November. House price inflation, which tracks spending by renters and homeowners, rose 0.8%. Home prices were the dominant factor that drove the core index higher.

After last week’s December inflation report, which showed the annual CPI slowed to 6.5% from 7.1% in November, investors began expecting the Fed to raise the benchmark interest rate by 25 basis points on Feb. 1, up from 50 basis points last month.

“The CPI report is in line with consensus, but the details paint a picture of continued pressure,” according to Jefferies economists Aneta Markowska and Thomas Simons.

“We think [the CPI report] calls for a 50 basis point rate hike at the next open market committee (FOMC) meeting, although this is by no means axiomatic.”

A number of other economists also see the potential for the Fed to stick to a half-percentage-point rate hike at the upcoming meeting.