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 Federal Reserve will hold its first policy meeting of the year on Jan. 28 and 29, where it is widely expected to keep interest rates right where they are after cutting three times since September.

Federal Reserve officials are expected to leave interest rates steady this week, giving themselves more time to lower inflation and to assess how President Donald Trump’s policies will affect the economy.