Summary:
March's CPI surged to 3.5%, led by higher housing and energy expenses, dimming prospects for imminent Fed rate cuts.
US CPI April, 15/5/2023 (Wed)
Previous: 3.5% Forecast: 3.4%
The consumer price index accelerated at a faster-than-expected pace of 3.5% in March due to rising shelter and energy costs, dashing hopes that the Fed will cut interest rates anytime soon.
That marks the highest annual gain in the past six months. Stubborn inflation was also bad news for workers, as real average hourly earnings increased just 0.6% over the past year.
That report further highlights that the path to lower inflation remains extremely bumpy. Minneapolis Fed President Neel Kashkari said that the central bank may need to hold interest rates through the rest of the year.
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