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.

Entering 2025, models from forecasting companies like Trading Economics anticipate inflation rates between 2.4% and 2.9% between the end of 2024 and the start of 2026. Unfortunately, actually predicting inflation can be difficult, as rates can be affected by a variety of factors, including political climates and supply-chain interruptions.

US consumer inflation rose for a third straight month in December as energy prices rose, according to government data published Wednesday, adding pressure on the Federal Reserve to pause rate cuts.

The annual inflation rate for housing and household services was 6.0% in December 2024, up from 5.8% in November. This compares with a recent peak of 11.8% observed in January and February 2023. On a monthly basis, prices rose by 0.4% in December 2024, compared with a rise of 0.3% a year ago.

Gas prices rose sharply, but investors homed in on a small decline in the core CPI.

The consumer price index, an inflation gauge, rose 2.9% on an annual basis in December 2024 on the back of higher food and energy prices.

Consumer inflation increased 2.9% in 2024, which is above the Federal Reserve's goal of 2%, but wages overall more than kept up with higher prices.

Inflation ticked up in December while core growth slowed. According to the Bureau of Labor Statistics, the headline figure for the Consumer Price Index rose to 2.89% year-over-year, right in line ...

Inflation, as measured by the producer price index, rose three-tenths of a percentage point to 3.3% for the year ending in December, hinting that the economy may not yet have vanquished price pressures.

The Consumer Price Index rose 2.9 percent from a year earlier, but a measure of underlying inflation was more encouraging.

Recently, progress on inflation appeared to be stuck or, at worst, reversing: A closely watched gauge of underlying price hikes — an index that excludes highly volatile categories — hadn’t budged for months.

Progress on inflation should stall this year” as fiscal, immigration and trade policies shift, caution Bank of America economists.