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.

A key measure of consumer prices rose less than expected in December, perhaps calming at least temporarily fresh worries about a recent rebound in inflation. An uptick in inflation since the end of su