US consumer inflation accelerating to 3.5% in March.
Inflation in the United States showed further acceleration in the most recent month, as reported by the US government on Wednesday. This upward trend reduces the likelihood of an early interest rate cut by the Federal Reserve.
The annual Consumer Price Index (CPI) for March reached 3.5 percent, marking a 0.3 percentage point increase from February, according to data released by the Labor Department.
A key inflation metric, which excludes volatile food and energy prices, surged at an annual rate of 3.8 percent, signaling sustained price pressures across various sectors of the economy.
Short-term US interest-rate futures traders are betting that the Federal Reserve will only cut rates twice this year. Fed swaps indicate a full shift in pricing for a rate cut from September to November.
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Last reviewed by Abhishek Sharma on August 31, 2026
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