The consumer inflation in the United States accelerated in March, according to what the US Government published on Wednesday, which reduces the chances of an eventual interest rate cut by the Federal Reserve.
The annual consumer price index (CPI) stood at 3.5% last month, 0.3 percentage points higher than in February, according to the Department of Labor. Excluding volatile food and energy prices, inflation rose at an annual rate of 3.8%.
The Federal Reserve (Fed, central bank) has raised interest rates to the highest level in the last 23 years to try to stop inflation and bring it to its 2% target.
Price growth has fallen significantly from the peak reached in 2022, a trend that has reversed in recent months, keeping markets guessing about when the Fed will begin cutting rates.
According to a survey of economists conducted by Dow Jones Newswires and The Wall Street Journal, the March rise in the CPI was slightly above expectations of 3.4%.
Monthly inflation was 0.4%, also above expectations.
The housing and gasoline indices together contributed to “more than half” of the monthly increase, according to the Labor Department.
Source: Ambito
