US inflation accelerated in December as Americans paid more for housing and driving, challenging investor bets that the Federal Reserve will cut interest rates soon. The consumer price index increased 3.4% in the year through December, the most in three months according to government figures. …On an annual basis, the so-called core measure increased 3.9%. …Despite the pickup, the figures cap a year in which inflation broadly eased without doing much damage to the labor market, setting the stage for the Fed to lower borrowing costs this year. …“The surprisingly strong CPI print for December shows the road to a durable return to 2% inflation is bumpy, and the last mile could be difficult.”…Inflation is expected to moderate further this year toward the Fed’s 2% target, especially as housing costs are seen easing. However, other factors like rising shipping costs could put upward pressure on oil prices.