U.S. inflation picked up last month as gas prices rose sharply, though price gains for other goods were more muted.

The Labor Department released the inflation report for December which showed prices were up 2.9% from a year ago, in line with economists expectations and up from 2.7% in November.

Wholesale prices rose less than expected in December, a positive sign for the economy amid recent market fears that inflation isn't falling as quickly as hoped to the Federal Reserve's 2% target.

Wholesale prices rose a seasonally adjusted 0.2% in December, half of what Wall Street forecasters believe would jump while the rate for the core producer price index over the same period remained flat,