CPI edged higher in December, complicating the Fed's upcoming decision on rate cuts

Inflation rose 2.9% on an annual basis in December, with the latest Consumer Price Index illustrating the Federal Reserve's challenge in battling stickier-than-expected price increases. 

Last month's CPI was forecast to come in at 2.8%, according to economists surveyed by financial data firm FactSet. The Consumer Price Index, a basket of goods and services typically bought by consumers, tracks the change in those prices over time. 

The Federal Reserve began cutting rates in September following a flurry of hikes that helped tame inflation after it hit a four-decade high of 9.1% in June 2022. Yet the Fed has struggled with the last leg of its inflation battle in pushing the CPI to a 2% annual rate, and December's reading could convince the central bank to hold off on another rate cut at its next meeting, scheduled for Jan. 29.