Consumer prices posted a smaller than expected increase in August from a year ago, according to the Federal Reserve’s primary inflation gauge, the Commerce Department reported Wednesday.

The personal consumption expenditures price index increased a seasonally adjusted 0.3% for the month, putting the 12-month gain at 3.4%. Economists surveyed by Dow Jones had been looking for increases of 0.3% and 3.7% respectively.

Excluding food and energy, PCE posted a 0.2% increase that put the annual core level at 3%. The respective forecasts were for 0.3% and 3.3%.

Though the Fed officially follows the headline PCE number, officials generally consider core a better gauge of longer-term trends.

While the annual increases were less than expected, they came as the Bureau of Economic Analysis adjusted the way it computes several components of the index. It was not immediately clear what impact the revisions had on the final numbers.

The report also showed that personal income rose 0.2% while spending increased 0.9%, against the respective consensus for 0.4% and 0.8%.

Both levels are still considerably higher than the central bank’s 2% target, raising the possibility that the Fed will follow up its September interest rate hike with another increase at either of its remaining meetings this year in October or December.

Energy costs were the primary culprit for the price increase in August, though multiple other sectors also showed gains. Gasoline jumped 4.4% and transportation services accelerated by 1.4%. Energy goods and services rose 2.3%.

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