When the Fed last published its quarterly outlook in September, for instance, a solid majority on its monetary-policy committee projected that their most important inflation gauge would retreat to 2.2% next year.

The U.S. Federal Reserve will cut interest rates by 25 basis points on Dec. 18, according to 90% of economists polled by Reuters, with most expecting a pause in late January amid concerns about rising inflation risks.

While the Federal Reserve is expected to cut its key interest rate next week, stubborn inflation could pressure the central bank to keep rate cuts few and far between next year.