US CPI inflation rises in March above expectations

According to the US Bureau of Labour Statistics (BLS) report released on Wednesday, the annual rate of inflation in the US increased to 3.5% in March from 3.2% in February, as shown by changes in the Consumer Price Index. This result above the 3.4% market expectation.

The US Dollar gathered strength against its major rivals with the immediate reaction. The US Dollar Index was up 0.55% on the day at 104.70 as of the time of publication.
The annual core CPI, which excludes volatile food and energy prices, rose 3.8% in the same period, matching February’s increase. On a monthly basis, the CPI and the core CPI both rose 0.4%, compared to analysts’ estimate of 0.3%.

The index for shelter rose in March, as did the index for gasoline. Combined, these two indexes contributed over half of the monthly increase in the index for all items,” the BLS noted in its press release. “The energy index rose 1.1% over the month. The food index rose 0.1% in March. The food at home index was unchanged, while the food away from home index rose 0.3% over the month.”