Inflation rose to 3.5% for the year ending in March, the Bureau of Labor Statistics reported Wednesday in an update to the consumer price index.
The rise in headline inflation is more than expected and an unwelcome development for the Federal Reserve, which has been aiming to move toward cutting interest rates in the coming months. It’s also bad news for President Joe Biden. The White House has been emphasizing recent declines in inflation, alongside the robust labor market, as “Bidenomics” in action.
The Fed has worked to drive down inflation for two years now by raising interest rates. Wednesday’s report casts uncertainty over the timing of the Fed beginning to trim rates.
On a month-to-month basis, inflation rose 0.4%, more than expected.
“Core inflation,” which doesn’t include volatile food and energy prices, remained at 3.8% for the year ending in February. Overall, core inflation has largely trended down this year in an
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