Key Takeaways The Consumer Price Index rose 2.9% in December, accelerating from a 2.7% annual increase in November.Core inflation rose 3.2% over the year, down from 3.3% in November, providing optimism for the trajectory of the cost of living.

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.

The closely scrutinized monthly consumer-price index is due at 8:30 a.m. ET. Here are some key points to know ahead of the report: Economists expect annual inflation to come in at 2.9% as of December,

There have been some troubling signs of inflation expectations picking up. The University of Michigan’s gauge of consumer expectations for price rises over the coming 5 to 10 years jumped to 3.3% in the preliminary January reading -- the highest since 2008. Now, politics was at play there: Democrats’ inflation expectations exploded, while those of Republicans tumbled. But it goes to show the nervousness about Trump’s agenda on the part of many Americans.