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.

Managing partner and Chief Investment Officer of the Armstrong Advisory Group, Chuck Zodda breaks down this week's financial news including the CPI Inflation report.

Inflation is proving stickier than expected, which could cause Fed to hit pause button on more interest rate cuts.

Federal Reserve Bank of Richmond President Tom Barkin said fresh inflation data show the central bank continues to see progress on lowering inflation toward its 2% goal, but that interest rates should remain restrictive.

Take a look at how various financial markets are trading following the release of December's consumer-price index: stock futures, Treasury yields, the dollar, gold and Brent crude oil.

Consumer price index data for December showed that core price pressures eased more than expected. S&P 500 futures rose as Wall Street weighed the CPI's implications for Federal Reserve policy as well as positive earnings reports from Dow Jones giants JPMorgan Chase and Goldman Sachs.

The consumer price index is expected to show that core inflation ended the year on a bit softer note, but be ready for a disappointment as the S&P 500 tries to get back in rally mode.