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

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.

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 ...

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.

Exchange-traded funds that hold bonds were rallying on Wednesday morning, following fresh data from the consumer-price index showed the rate of core U.S. inflation slowed slightly last month. The iShares Core U.

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.

"Today's cooler-than-expected inflation print is unequivocally good ... near 43,114, according to FactSet. The Nasdaq Composite Index COMP was up 1.9%.

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 average 30-year fixed rate rose to 7.04% for the week ending Thursday, according to mortgage giant Freddie Mac. The average has now climbed for five straight weeks, and this week marks the first time since May the it has climbed above 7%. Last week, the average was 6.93%. Three years ago at this time, the average stood at 3.45%.