A key inflation metric eased for the first time since July as investors debate the Federal Reserve's next interest rate decision.

The Bureau of Labor Statistics released the consumer price index report for December earlier today. What the inflation data means for the Fed and interest rates.

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.

The latest consumer price index report shows inflation rose 2.9% year-over-year in December, marking three months of consecutive increases. Experts are warning of delays in interest rate cuts and possibly even rate hikes.

Federal Reserve Bank of Richmond President Tom Barkin said fresh inflation data show the central bank continues to see progress on lowering inflation toward its 2% goal, but that interest rates should remain restrictive.

The cost of living rose more in December than the month before, as rising energy costs hurt household budgets and stoked inflation. However, "core" prices were cooler, providing some hope for lower inflation in the coming months.

Take a look at how various financial markets are trading following the release of December's consumer-price index: stock futures, Treasury yields, the dollar, gold and Brent crude oil.

There have been some troubling signs of inflation expectations picking up. The University of Michigan’s gauge of consumer expectations for price rises over the coming 5 to 10 years jumped to 3.3% in the preliminary January reading -- the highest since 2008.

The Consumer Price Index ticked up by 0.4% in December, but a measure that excludes food and energy prices slowed for the first time in four months, the Labor Department said on Wednesday. Why it matters: Inflation resumed a cooling trend after a months-long interruption,

The closely scrutinized monthly consumer-price index is due at 8:30 a.m. ET. Here are some key points to know ahead of the report: Economists expect annual inflation to come in at 2.9% as of December,