Inflation moved up for a third month in a row, rising two-tenths of a percentage point to 2.9% for the year ending in December, adding to signs that the Federal Reserve may have to keep interest rates higher for longer.

Inflation ended 2024 by moving slightly higher. The U.S. Bureau of Labor Statistics reports a 0.4% increase in the Consumer Price Index for All Urban Consu

The Labor Department reported Tuesday that its producer price index — which tracks inflation before it hits consumers — rose 0.2% last month from November, down from a 0.4% gain the month before. Compared to a year earlier, producer prices rose 3.3%, biggest jump since February 2023 and up from a 3% gain in November.

The December figure marked a deceleration from monthly producer-price increases in November, when prices rose by 0.4%.

U.S. wholesale inflation rose last month on higher energy prices. The Labor Department reported Tuesday that its producer price index — which tracks inflation before it hits consumers — rose 0.2% last month from November,