The measure of price increases targeted by the Fed sped up in December, reflecting a stubborn spell of inflation that remains modestly higher than the central bank’s target.

U.S. prices increased in December while consumer spending surged, suggesting that the Federal Reserve could delay cutting interest rates for some time this year.

An inflation metric favored by the Federal Reserve rose in December, showing that prices continue to rise at a pace greater than the central bank wants while leaving consumers paying more for everyday items.

The US Federal Reserve's preferred inflation measure accelerated for a third month in a row in December, according to government data published Friday, while underlying inflation was unchanged.