The headline inflation rate registered at 3.5% year-on-year, surpassing the 3.4% economists had anticipated in a Dow Jones survey and marking a 0.3% increase from February 2024.
The core CPI experienced a 0.4% rise on a monthly basis and a 3.8% increase from the previous year, both exceeding expectations. U.S. stocks also dropped on the announcement.
Recent monthly readings have likely diminished any residual expectations for a Federal Reserve rate cut as early as May, according to some analysts.
Markets remain hopeful for a rate cut this summer; however, the Federal Reserve is seeking consistent signs of disinflation in the upcoming months before deciding.
Treasury yields have risen as stocks declined following the headline news.