Inflation keeps coming in hot, likely delaying interest rate cuts

Inflation ticked up again in March compared with the year before — in yet another sign that the economy doesn’t need high interest rates to come down any time soon.

Fresh data from the Bureau of Labor Statistics on Wednesday showed prices rose 3.5 percent from March 2023 to March 2024. That’s up slightly from the 3.2 percent annual figure notched in February. Prices also rose 0.4 percent between February and March.

The result: The Federal Reserve is very unlikely to cut interest rates in the next few months. Officials have been looking for a bit more assurance that inflation is steadily falling before deciding it’s time to trim borrowing costs. But since the start of the year, the data has brought unwanted surprises, with economists and the markets now expecting no cuts until later in 2024.

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