U.S. inflation likely worsened last month on the back of higher prices for gas, eggs, and used cars, a trend that could make it less likely that the Federal Reserve will cut its key interest rate much this year.

The pound fell after data showed UK inflation fell unexpectedly in December, easing fears over persistent price pressures and potentially opening the door to further Bank of England interest-rate cuts.

Inflation cooled to 2.5% at the end of the year, making it more likely that the Bank of England will continue to lower its key interest rate.

World stocks were mixed on Wednesday following Wall Street’s mostly positive performance before key U.S. inflation data that could influence the pace of market-boosting rate cuts by the Federal Reserve.

U.S. stocks rose modestly in choppy trade on Tuesday as investors gauged inflation data and braced for quarterly earnings reports to justify stock valuations and the strength of the U.S. economy. Stocks received an initial lift after a Labor Department report showed the producer price index rose less than expected in December,