US consumer prices (CPI-U) unexpectedly surged by 0.4 per cent in March, driven by gasoline and rental housing costs, with a 3.5 per cent increase over 12 months, as per official data released on Wednesday. The latest figure raises concerns despite a decline from previous highs.
Concurrently, data released about accelerated job growth in March and a drop in the unemployment rate by 0.1 per cent from 3.9 per cent in February provided some relief.
Despite this, concerns over high living costs persisted, although some sectors showed signs of deflation.
Moreover, economists reassured that the inflation pickup is likely temporary.
According to Reuters, Biden administration urged corporations to lower prices, while the Fed’s concern about stalled inflation progress led to market adjustments.
