The Globe and Mail reports in its Saturday edition that U.S. inflation rose significantly in December due to strong consumer spending, indicating the Federal Reserve is unlikely to cut interest rates soon. A Reuters dispatch to The Globe reports that the Commerce Department's report on Friday indicated a slight monthly increase in prices, excluding food and energy, but core inflation's annual rise has not slowed since October, with disinflation progress stalling in the fourth quarter. The Fed kept rates unchanged for the first time since starting its easing cycle in September. The policy statement dropped the mention of inflation making progress toward the 2-per-cent target. High Frequency Economics' Carl Weinberg says, "The Fed's prognosis is for a slower pace of monetary easing moving forward, as the economy is doing well and prices are only slowly returning to target in an environment of great uncertainty." The Personal Consumption Expenditures (PCE) Price Index rose 0.3 per cent last month, in line with economists' expectations. Goods prices rose 0.2 per cent, the first gain in five months, lifted by higher costs for motor vehicles and parts as well as gasoline and other energy goods, which jumped 4.2 per cent.