The Labor Department released the inflation report for December which showed prices were up 2.9% from a year ago, in line with economists expectations and up from 2.7% in November.

Saudi Arabia's annual inflation rate fell slightly to 1.9% in December from 2% in November, according to government data released on Wednesday.

UK inflation fell last month but remains above the Bank of England's target. Prices rose 2.5% in the year to December, down from 2.6% the month before, the Office for National Statistics (ONS) said. The latest figures come after pressure has increased on the public finances in recent days due to government borrowing costs hitting their highest level for several years.

A global equities gauge rallied on Wednesday while the dollar fell with Treasury yields after data showed core U.S. inflation rose less than expected in December, raising hopes that the Federal Reserve could ease rates further.