Analysts had on average expected prices to rise by 3.4 percent. But prices are rising faster.
Inflation in prices in the USA unexpectedly accelerated significantly in March. Consumer prices rose by 3.5 percent compared to the same month last year, as the US Department of Labor in Washington announced. Analysts on average had expected a rate of 3.4 percent. In February it was still at 3.2 percent.
In a month-on-month comparison, consumer prices rose by 0.4 percent in March. An increase of 0.3 percent was expected here.
The core inflation rate remained at 3.8 percent. Economists had expected a decline to 3.7 percent. Compared to the previous month, core consumer prices rose by 0.4 percent.
The core rate is given particular attention by the US Federal Reserve Bank. According to experts, it reflects the general price trend better than the overall rate because components that are prone to fluctuations such as energy and food are excluded.
The numbers are of great importance for the monetary policy of the US Federal Reserve, which has kept its key interest rates stable in recent months. Interest rate cuts are expected on the financial markets later in the year. However, Fed representatives have recently dampened expectations. Some central bank representatives even questioned whether a rate cut was even necessary.
Source: Stern
