US Inflation Refuses to Bend, Fanning Fears It Will Stick
- Consumer prices rose in March amid stronger services inflation
- Report reorders bets on Fed easing, dashing hopes for June cut
A key US price gauge topped forecasts for a third straight month on gains in rents and transportation costs, spurring concerns that inflation is becoming entrenched and likely further delaying Federal Reserve interest-rate cuts.
The so-called core consumer price index, which excludes food and energy costs, increased 0.4% from February, according to government data out Wednesday. The year-over-year rate was unchanged at 3.8%, defying expectations for a downtick.