Palladium prices rose on Friday as the dollar settled against most major rivals, with demand outlook improving.

Earlier US data showed core consumer prices, which excludes food and energy, rose 3.9% in December, slowing down from 4% in November, but still higher than expectations of 3.8%.

On a monthly basis, consumer prices rose 0.3% in December, while core prices rose 0.3%.

Such data casts doubts on potential Fed policy easing in upcoming months, as inflation remains far from the 2% target.

Otherwise, the dollar index stabilized at 102.2 as of 16:00 GMT, with a session-high at 102.5, and a low at 102.09.

Otherwise, palladium futures due in March rose 0.1% to $984 an ounce.