US inflation ticked up to 3.4% in December as policymakers mull rate cuts

Consumer price index exceeds economists' expectations as Fed weighs when to start cutting borrowing costs

Inflation ticked higher in the United States last month as the Federal Reserve weighs the latest stage of its battle against price growth.

The headline consumer price index increased at an annual pace of 3.4% in December, according to the Bureau of Labor Statistics, up from 3.1% in the previous month, and exceeding economists' expectations of about 3.2%.