Consumer Price Index showed an acceleration to 2.9%, the highest rate since July. With such high inflation, the Fed is unlikely to cut rates in January.

The path of inflation proved bumpier than expected in December, with price growth picking up more than economists had forecast. The consumer price index climbed 2.9% year over year in December, according to data released Wednesday by the Bureau of Labor Statistics.

Traders are feeling more confident that the Federal Reserve will cut interest rates this year after a key inflation gauge came in cooler than expected. Core consumer prices, which exclude volatile food and energy categories,

Annual inflation ticked up for a third straight month in December as food, energy costs rose, CPI report showed. But underlying price measure eased.

US consumer inflation rose for a third straight month in December as energy prices jumped but a widely-watched measure eased slightly, raising hopes that underlying inflation may be moderating.

US consumer inflation rose for a third straight month in December as energy prices rose, according to government data published Wednesday, adding pressure on the Federal Reserve to pause rate cuts.

US consumer prices showed no signs of cooling in December amid higher costs for energy goods — pointing to still elevated inflation that aligns with the Federal Reserve’s projections for fewer interest rate cuts this year.