U.S. consumer spending rose modestly in May and inflation cooled, pointing to a slow-but-steady economic expansion that could still lead the Federal Reserve to raise interest rates by the end of the year.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.1 percent last month and consumer prices outside food and energy were up 1.4 percent from May 2016, the Commerce Department said on Friday.

The slower growth in consumer spending followed strong readings in April and March. The economy still appears on track to bounce back to stronger growth in the second quarter after a meager expansion in the first three months of the year.

The personal consumption expenditures (PCE) price index fell 0.1 percent in May from April and, when food and energy were excluded, was up 0.1 percent.

The 12-month reading for the so-called core inflation has been slowing since February, although Fed Chair Janet Yellen earlier this month said the dip was likely temporary.

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