Inflation rises 2.9% in December, in line with expectations

So-called core prices, which exclude more volatile measurements of gasoline and food to better assess price growth trends, were up 0.2% on a monthly basis in December, in line with expectations and down from 0.3% the prior month. Core prices were up 3.2% in December compared with a year ago, slightly cooler than expected and down from 3.3% in November.

The consumer price index (CPI) rose 0.4% on a monthly basis and was up 2.9% from a year ago in December. (Justin Sullivan/Getty Images / Getty Images)

The report showed that inflationary pressures in the U.S. economy continue to persist despite progress in bringing inflation closer to the Federal Reserve's 2% target over the past year.

High inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Price hikes are particularly difficult for lower-income Americans, because they tend to spend more of their already-stretched paycheck on necessities and have less flexibility to save money.