New data from the Bureau of Labor Statistics out Wednesday showed that a key inflation metric eased for the first time since July. On a "core" basis, which strips out the more volatile costs of food and gas,

Financial writer analyzes December CPI report showing inflation above target, speculates on future trajectory and Federal Reserve policy path. Click for more.

The Labor Department released the inflation report for December, which showed prices were up 2.9% from a year ago, in line with economists expectations and up from 2.7% in November.

U.S. stock index futures extended gains on Wednesday as investors assessed a broadly in-line consumer inflation report to gauge its effect on the Federal Reserve's monetary policy easing this year. Data from the Labor Department showed the consumer price index rose 2.

The consumer price index increased a seasonally adjusted 0.4% on the month, putting the 12-month inflation rate at 2.9%. The annual number was in line with forecasts. Core CPI annual rate was 3.2%, a notch down from the month before and slightly better than the 3.

The Consumer Price Index 0.4% M/M in December, matching the consensus and slightly accelerating from the 0.3% increase in the previous month, according to U.S. Bureau of Labor Statistics data released on Wednesday.