Analysis: Core CPI exceeds expectations again, the Fed may delay interest rate cuts

PANews reported on April 10 that a measure of U.S. underlying inflation exceeded expectations for the third consecutive month, indicating that continued price pressure may delay the Federal Reserve's interest rate cut until later this year. Core CPI rose 0.4% from February and 3.8% year-on-year, the same as last month. Wednesday's report was further evidence that despite the Federal Reserve keeping interest rates at 20-year highs, progress in curbing inflation may be stalling. With a strong labor market still driving household demand, officials have insisted they want to see more evidence that price pressures are continuing to cool before borrowing costs fall.

Bets for a rate cut by the Fed in June have all but disappeared after data showed higher-than-expected inflation, and even the outlook for July looks more shaky. Traders also firmed up their expectations for just two rate cuts this year, compared with the Fed's dot plot predicting three cuts.