The consumer price index, a key inflation gauge, rose 3.5% in March, higher than expectations and marking an acceleration for inflation.
Shelter and energy costs drove the increase. Energy rose 1.1% after increasing 2.3% in February, while shelter costs were higher by 0.4% on the month and up 5.7% from a year ago.
Following the report, traders pushed the first expected rate cut out to September, according to CME Group calculations.
