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 is proving stickier than expected, which could cause Fed to hit pause button on more interest rate cuts.

Wednesday’s report from the Labor Department showed that the consumer price index rose 2.9 percent in December from a year ago, the highest since July, up from 2.7 percent in November. It was the third straight increase after inflation fell to a 3 1/2 year low of 2.4 percent in September.