Inflation is proving stickier than expected, which could cause Fed to hit pause button on more interest rate cuts.

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.

Analysis of CPI inflation data shows mixed results for December 2024, impacting Fed rate decisions and stock market performance in 2025. Read our full outlook on Seeking Alpha.

Disinflation in key areas of consumer prices should help the Federal Reserve stick to its policy path of gradual cuts to interest rates.

Federal Reserve Bank of Richmond President Tom Barkin said fresh inflation data show the central bank continues to see progress on lowering inflation toward its 2% goal, but that interest rates should remain restrictive.

U.S. consumer prices increased slightly more than expected in November as energy costs rose, pointing to an inflation trend that lines up with the Federal Reserve's view for a slower path of rate cuts this year.

A key measure of consumer prices rose less than expected in December, perhaps calming at least temporarily fresh worries about a recent rebound in inflation. An uptick in inflation since the end of su

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

The Bureau of Labor Statistics is set to release the consumer price index report for December at 8:30 a.m. Eastern time on Wednesday. What the inflation data will mean for the Fed and interest rates.