Consumer Price Index (CPI) inflation was worse than expected in March, according to new figures. Economists had expected price rises to be up by 0.3 percent, but they were actually up by 0.4 percent. Inflation has been worse than forecast for several months in a row now.
Compared to the same time last year, inflation is up 3.5 percent. Last month, the year-on-year rise was 3.2 percent.
Surging energy and shelter costs are responsible for half the inflation increase, but measuring only “core inflation” — which excludes food and energy — still gives a rise of 0.4 percent.
The renewed acceleration of inflation makes it increasingly unlikely the Federal Reserve will cut interest rates before the end of the year. Previously, the U.S. central bank had signaled it was considering at least one rate cut prior to 2025.
News of the worse-than-expected inflation numbers was followed swiftly by a fall in U.S. stock-index futures. S&P 500 futures fell by 71 points, Nasdaq 100 futures by 275 points, and Dow Jones Industrial Average futures by 463 points.
Ron Klain, former Chief of Staff to President Joe Biden, recently warned the 81-year-old Democrat was not making enough progress on bringing down prices.
“Prices are still high, the price of gasoline is still high, other prices are still high, and people feel that pinch,” he said.
