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.

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.

Economists expect the consumer-price index, due this morning, to show inflation running at a 2.9% annual clip in December, up from 2.7% a month earlier. With that in mind, here's how inflation has tra