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

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.

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

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.

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,

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%.

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%.

RIAs grew more optimistic after the November election, but inflation concerns are keeping them clear-eyed, a study says.

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.

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.

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.

The article discusses the impact of high treasury yields on the S&P 500, highlighting opportunities for patient investors amid inflation fears and market fluctuations.