Wednesday’s report from the Labor Department showed that the consumer price index rose 2.9 percent in December from a year ago, the highest since July.

Inflation probably picked up in late 2024, fueled by robust household spending amid a strong economy. A key gauge of inflation — the consumer price index — is expected to show Wednesday morning that prices rose by 2.9 percent in December from a year earlier, according to economists’ forecasts of data released by the Bureau of Labor Statistics.

Inflation in the U.K. unexpectedly fell in December, a move that will likely fuel pressure on the Bank of England to cut interest rates again next month

U.S. and European stocks ticked higher on Tuesday as a sell-off in bonds moderated, although investors remained cautious ahead of U.S. consumer price inflation data on Wednesday and Donald Trump's inauguration as president next week.

Stocks gained ground in afternoon trading on Wall Street Tuesday following an encouraging update on inflation. The S&P 500 was up 0.3% in afternoon trading, after wobbling between gains and losses earlier in the day.

Market watchers are now awaiting the release of US consumer-price inflation data later in the day. A below-forecast read on US wholesale prices provided a little relief and helped the Dow and S&P 500 end higher Tuesday,