The key inflation indicator rises 3.6% from a year ago to increase the jump since the early 1990s

A measure of inflation that the Federal Reserve uses to set the policy rose 3.6% in July from a year ago, meeting Wall Street expectations, but it also tied the highest level in about 30 years.

The core price index for personal consumption spending, which the Fed considers the broadest measure of inflation, did not change from June, which was revised one-tenth of a percentage point, the Commerce Department said Friday . This 3.6% reading matched the Dow Jones estimate and appeared to be the highest level since May 1991.

Including volatile food and energy prices, the index rose 4.2% year-on-year, from 4% in June and the highest reading since January 1991.

Personal income also rose during the month, jumping 1.1%, well ahead of the Dow Jones estimate of 0.3%.

Consumer spending rose 0.3%, in line with expectations.

Monthly, the inflation reading was lower. Core inflation rose 0.3%, in line with estimates, while the overall figure rose 0.4%.

The Fed has seen inflationary pressures this year largely as a result of temporary pressures, although in recent days officials have admitted that the situation may take longer than originally thought.

Atlanta Fed Chairman Raphael Bostic told CNBC on Friday that business contacts in his region told him they saw inflation persist beyond the near future.

“We don’t want to and we really can’t afford to have too high inflation, because people at the lower end of the spectrum will be hurt very seriously,” he told CNBC’s Steve Liesman during a Squawk Box “interview.

Much of the current inflationary pressure comes from energy and food, which rose 23.6% and 2.4% respectively from a year ago.