US inflation tops forecasts once more, likely delaying Fed rate cut
Underlying inflation grew to 3.5 per cent in March, boosted by higher energy prices
A measure of underlying US inflation topped forecasts for a third straight month, heralding a fresh wave of price pressures that will likely delay any Federal Reserve interest-rate cuts until later in the year.
The so-called core consumer price index, which excludes food and energy costs, increased 0.4 per cent from February, according to government data out Wednesday. From a year ago, it advanced 3.8 per cent, holding steady from the prior month.
Economists see the core gauge as a better indicator of underlying inflation than the overall CPI. That measure climbed 0.4 per cent from the prior month and 3.5 per cent from a year ago, an acceleration from February that was boosted by higher energy prices, Bureau of Labour Statistics figures showed.
