The Labor Department's report shows U.S. wholesale prices rose 0.4% in December, while January's CPI data reveals an unexpected 3.3% year-on-year increase. Core inflation rose 0.4%, with significant shelter cost increases driving inflationary trends. Analysts warn that persistent inflation could complicate President Trump's proposed trade policies, including tariffs, and limit Federal Reserve interest rate cuts. Economists caution about the inflationary impact of Trump's policies. The Federal Reserve remains hesitant to cut rates, citing strong labor markets and ongoing inflation, while the economic landscape remains uncertain as the new administration's policies begin to take shape.