Asian stocks are mixed after Wall Street’s mostly positive performance ahead of key U.S. inflation data that could influence the pace of the Federal Reserve’s rate cuts

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.

Annual inflation ticked up for a third straight month in December as food, energy costs rose, CPI report showed. But underlying price measure eased.

Inflation probably picked up in late 2024, fueled by robust household spending amid a strong economy. A key gauge of inflation — the consumer price index — is expected to show Wednesday morning that prices rose by 2.

US inflation continued to heat up at the end of 2024. The consumer price index rose by 2.9% year over year in December, above November's 2.7% rate.

UK inflation fell last month but remains above the Bank of England's target. Prices rose 2.5% in the year to December, down from 2.6% the month before, the Office for National Statistics (ONS) said. The latest figures come after pressure has increased on the public finances in recent days due to government borrowing costs hitting their highest level for several years.