The US Bureau of Labor Statistics released the Consumer Price Index report for March, with inflation appearing to be back on the rise. The CPI rose 0.4% compared to the previous month while gaining 3.5% compared to the same month in 2023.
Both CPI measures beat the expectations of economists polled by Bloomberg, with forecasts being a 0.3% monthly gain and a 3.4% annual rise. While February’s monthly gains fell in line with March’s figures, March’s annual gain exceeded the 3.4% annual rise posted in February.
Looking at “core” inflation, which excludes more volatile food and energy costs, the CPI rose by 0.4% compared to February and 3.8% on a yearly basis. Economists expected a 0.3% monthly gain and a 3.7% year-over-year rise, with actual figures outpacing both. Should inflation continue this upward trend, the Federal Reserve may reconsider its stance on introducing interest rate cuts later in the year.