The U.S. Consumer Price Index (CPI) for December is anticipated to show a temporary rebound, with data set for release on January 12. This expected increase is attributed to statistical adjustments following the Bureau of Labor Statistics' return to normal operations. The market forecasts a slight rise in the Year-over-Year Overall CPI from 3.0% to 3.1%, while the Core CPI annual rate is expected to remain at 3.0%. Despite the anticipated CPI rebound, the U.S. labor market continues to cool, as evidenced by the November nonfarm payrolls data showing an unemployment rate increase to 4.6%, the highest in nearly four years. However, the reliability of this data is questioned due to the recent government shutdown. Interest rate futures suggest that the Federal Reserve is likely to keep rates unchanged in January, with potential rate cuts speculated for March, April, or June, though none have reached a consensus pricing above 50%. The December CPI release could amplify market volatility, with three potential scenarios: a reading in line with expectations, a significant exceedance raising inflation concerns, or a sharp decline reinforcing easing expectations. Each scenario could impact risk assets and interest rate expectations differently, highlighting the importance of monitoring the data closely.