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.

The market sees the probability of another 25 basis point interest rate cut at next week's Federal Reserve meeting as rising despite inflation ticking higher in November.

The Federal Open Market Committee is most likely to cut interest rates again on December 18 to 4.25% to 4.5%, according to fixed income markets.

Global shares and Wall Street indexes rose on Wednesday after an in-line inflation reading kept intact bets on the Federal Reserve cutting interest rates later this month.

Inflation is moving in the wrong direction. U.S. inflation picked up for a second straight month in November on a rise in food and gasoline prices, underscoring that the final stretch of the Federal Reserve's two-year battle against sharply rising prices has become more challenging.

The final U.S. consumer inflation report of the year on Wednesday cemented expectations for another quarter-point rate cut by the Federal Reserve's monetary policy committee next week. The headline and core consumer price index (CPI) for November came in-line with consensus estimates,

Inflation has risen since the summer and raised anxiety at the Federal Reserve, but a welcome slowdown in housing costs could be just what the doctor ordered.