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

U.S. inflation likely worsened last month on the back of higher prices for gas, eggs, and used cars, a trend that could make it less likely that the Federal Reserve will cut its key interest rate much

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.

Inflation picked up in December, if economic forecasters are right—driven by rising food and energy costs. And the uptick will almost certainly push the Federal Reserve to rethink any plans for a rate cut in January.

There appears to be some welcome news on the US inflation front. Price hikes on the wholesale level were much tamer than anticipated in December, according to the latest Producer Price Index released Tuesday,

Consumer inflation data came in slightly hotter than expected in December. Consumer prices were up 2.9% for the 12 months ended in December as compared to 2.7% in November, according to the latest Consumer Price Index data released Wednesday by the Bureau of Labor Statistics. On a monthly basis, prices rose by 0.4%.

The dollar index was weaker and DHF Capital said persistent inflation could support the currency, with expectations of a hawkish Fed benefiting the dollar, adding that Wednesday’s. inflation data and comments from Fed officials should provide clarity on the 2025 monetary policy outlook.

U.S. stocks were surging on Wednesday morning as Treasury yields fell after core inflation data came in below expectations, boosting bets that the Federal Reserve will still be able to cut interest rates this year.

Prices increased by 2.5% on an annual basis in December, down from 2.6% in November. Full coverage from the team at MoneyWeek.

With energy and food inflation markedly stronger in December, the overall reading for the consumer price index surged last month. But taking those categories out of the mix revealed a far more benign inflation reading.

Economists expected consumer prices to rise 0.3% on a monthly basis in December, and for the annual inflation rate to rise to 2.8%, according to FactSet’s consensus estimates. Core inflation was ...

Market-implied expectations for future inflation were little changed despite a milder-than-expected monthly core reading from December's CPI report on Wednesday — indicating that concerns about the outlook remain.