US consumer prices came in hotter than expected in March, according to the latest data from the Bureau of Labor Statistics released Wednesday morning.
The Consumer Price Index (CPI) rose 0.4% over the previous month and 3.5% over the prior year in March, an acceleration from February’s 3.2% annual gain in prices. The data matched February’s month-over-month increase.
Both measures came in ahead of economist forecasts of a 0.3% monthly increase and a 3.4% annual increase, according to data from Bloomberg.
The hot print complicates the Federal Reserve’s next move on interest rates as the central bank works to bring inflation back down to its 2% target. Fed officials have categorized the path down to 2% as “bumpy.”
Investors now anticipate roughly three 25-basis-point cuts this year, down from the six cuts expected at the start of the year, according to Bloomberg data.
On a “core” basis,…
