US inflation rises to 2.9% in December

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US inflation rose to 2.9 percent in December, in line with expectations, helping the Federal Reserve slow the pace of interest rate cuts this year.

Data from the Bureau of Labor Statistics on Wednesday matched the forecasts of economists polled by Reuters and beat the November reading of 2.7 percent.

per year inflation The latest reading before Monday’s final inauguration of Donald Trump’s second term in office comes days after US jobs growth in December defied past expectations.

Labor market data deepened the selloff Treasuries as investors bet the US central bank should keep interest rates on hold for longer this year.

Core inflation, which strips out food and energy prices, was 3.2 percent in December, up from 3.3 percent in November.

Fed officials have already signaled they plan to take a “cautious approach” to cutting interest rates amid growing concerns that inflation may not fall below the central bank’s 2 percent target.

Most investors and analysts believe the Fed will not cut interest rates again at its next policy meeting later this month.

The renewed inflation worries come as Trump has rolled out aggressive plans to impose tariffs on a huge swath of imports, crack down on illegal immigrants and implement sweeping tax cuts.

Economists have warned that these plans could further fuel inflation.