The consumer price index (CPI) rose 2.9 percent year-over-year in December, the largest annual increase since July. When stripping out the more volatile food and energy sectors, core inflation slowed to 3.2 percent, from 3.3 percent.

The Federal Reserve has now battled high inflation for nearly four years. Economists point to the Federal Reserve's rate cuts, rising oil prices, consumer psychology, and potential tariffs as factors holding back inflation's progress.

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.

President Biden discussed the economy in the last interview of his administration on MSNBC’s “The Last Word with Lawrence O’Donnell" Thursday night.

Annual inflation ticked up for a third straight month in December as food, energy costs rose, CPI report showed. But underlying price measure eased.

The central bank’s recent infusion of financial-market brawn includes Beth Hammack, who worked for three decades at Goldman Sachs.

The latest inflation report slashed the risk that the Fed could go back to hiking interest rates this year, Wall Street strategists say.

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

A relatively benign U.S. reading on consumer price increases triggered a sharp relief rally in stocks and bonds on Wednesday, but traders and investors warn that markets are likely to remain anxious about the pace of inflation.

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

Shelter costs were 4.6% higher in December than a year earlier, and they account for more than a third of the consumer price index.

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.