US March inflation rose more than expected

US inflation rose more than expected in March, both headline and core inflation. The CPI Year-over-Year rose 3.5% versus 3.4% expected. CPI also rose 0.4% Month-over-Month versus 0.3% expected. The core CPI Year-over-Year rose 3.8% versus 3.7% expected, and 0.4% on a monthly basis versus 0.3% expected. As you can see from the chart above, despite its progress since early 2022, current inflation is still above the Fed's target rate of 2% reinforcing Fed's caution in cutting rates. April 2024 CPI data are scheduled to be released on May 15.

By: António Costa, Alcral AG Head of Global Investments