Inflation figures came in near as expected for December. Prices rose 0.4% percent and the year-over-year price index increased 2.9 percent.
The U.S. Bureau of Labor Statistics issued the December Consumer Price Index on Wednesday morning.
The consensus had been for a 0.4% gain for the month and a 2.9% increase year-over-year.
While the overall number showed prices still increasing, the so-called core number showed it is slowing when certain volatile categories are stripped from the number.
The index for energy rose 2.6 percent in December, accounting for over 40 percent of the monthly all-items increase. The gasoline index increased 4.4 percent over the month. The index for food also increased in December, rising 0.3 percent as both the index for food at home and the index for food away from home increased 0.3 percent each.
Stock futures shot up in pre-market trading as it appears that inflation is not accelerating.
The November report showed an increase of 0.3 percent and the index rose 2.7% for the 12 months that ended in November.
There have been growing concerns that the numbers are not reaching the Federal Reserve's 2% target for inflation and the possibility the Fed may pause interest rate cuts.
Traders raised bets that there would be a June rate cut after Wednesday's report.
There have been conflicting data. The December Producer Price Index report showed inflation came in much lower than expected. It saw a gain of 0.2 percent when the consensus was for a 0.4 percent gain.
One concern about future inflation is that President-elect Donald Trump's tariff plan could accelerate inflation after he takes office next week.
