Investors are closely monitoring the upcoming release of the U.S. Consumer Price Index (CPI) for December, set for Wednesday, as they seek indications of whether inflation is reaccelerating. The CPI report is considered possibly the 'most important inflation reading' in recent memory, with economists forecasting a year-over-year headline CPI increase to 2.9% from the previous 2.7%. The core CPI, which excludes food and energy, is expected to rise by 0.2% month-over-month, maintaining the annual rate at 3.3%. A range of forecasts from investment banks and other institutions, including Bank of America at 2.8%, Wells Fargo, Citigroup, Goldman Sachs, Morgan Stanley, and others at 2.9%, and UBS at 3.0%, indicate a consensus around the 2.9% mark for the headline CPI. The report's outcome could influence market expectations regarding the Federal Reserve's interest rate policies, particularly in relation to the central bank's 2% inflation target, with a higher-than-expected CPI potentially reinforcing fears of persistent inflation. Stock investors are bracing for the impact of this crucial data.