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

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.

With energy and food inflation markedly stronger in December, the overall reading for the consumer price index surged last month. But taking those categories out of the mix revealed a far more benign inflation reading.

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%.

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 ...

Market-implied expectations for future inflation were little changed despite a milder-than-expected monthly core reading from December's CPI report on Wednesday — indicating that concerns about the outlook remain.

Recently, progress on inflation appeared to be stuck or ... The consensus estimates on FactSet did anticipate core slowing on a monthly basis but holding firm at 3.3% for the year.

Asian stocks were mixed Wednesday following Wall Street’s mostly positive performance ahead of key U.S. inflation data that could influence the pace of market-boosting rate cuts by the Federal Reserve.

"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%.

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.