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.

US CPI rose 0.4% MoM and 2.9% YoY. The market reacted bullishly, with bond yields dropping and equity futures rising. See what Fed is expected to do.

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.

The closely scrutinized monthly consumer-price index is due at 8:30 a.m. ET. Here are some key points to know ahead of the report: Economists expect annual inflation to come in at 2.9% as of December,

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.