A runup in U.S. inflation in the first three months of 2024 shows signs of persisting, potentially keeping interest rates high through the summer.
The consumer price index rose 0.4% in March on the heels of similarly large gains in the prior two months.
As a result, the yearly rate of inflation rose to 3.5% from 3.2% and hit the highest level in six months.
The core rate of inflation, meanwhile, also increased 0.4% in March to leave the yearly rate unchanged at 3.8%. The core rate omits food and energy and is seen as a better predictor of future inflation trends.
Federal Reserve leaders have signaled they want to see the rate of inflation slow toward their 2% goal before they cut interest rates. The Fed jacked up rates in 2022 and 2023 to try to extinguish high inflation.
