Consumer prices report shows inflation lingers

WASHINGTON — An inflation gauge closely watched by the Federal Reserve rose slightly last month, while some underlying prices pressures showed signs of easing.

The Commerce Department reported Friday that consumer prices rose 2.6% in December from a year earlier, up from a 2.4% annual pace in November and the third straight increase. Excluding the volatile food and energy categories, core prices ticked up 0.2% in December from the previous month, and were up 2.8% compared with a year ago — the same as in November and October.

Economists and Fed officials pay close attention to core prices as they provide a better read on where inflation is headed. Federal Reserve officials decided to pause their interest rate cuts Wednesday in part because inflation has largely been stuck at about 2.5%, above their 2% target.