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.

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.

Take a look at how various financial markets are trading following the release of December's consumer-price index: stock futures, Treasury yields, the dollar, gold and Brent crude oil.

The Fed has considered the inflation rate a key factor in its monetary policy decisions. The Fed’s key short-term interest rate is currently in a range of between 4.25% to 4.5%, after the central bank reduced rates by 25 basis points at the Dec. 18 meeting, marking the third consecutive rate cut.

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

A fter several months of hopeful signs in the battle against inflation, new data confirms that the fight is far from over. Inflation rose 2.9% on an annual basis in December, whic

Federal Reserve policymakers may be able to reduce interest rates a couple of times this year, traders bet on Wednesday, after a government report helped allay fears that inflation was accelerating in the final full month of Joe Biden's presidency.

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