WEST PALM BEACH, Fla. — New data from the federal government released Wednesday shows inflation is still an issue for consumers, and it's unlikely to trigger any relief from high interest rates.
"It was worse than expected, no matter how you slice it," Bankrate economist Greg McBride said. "It increased faster on a month-over-month basis. It increased faster on a year-over-year basis."
The Consumer Price Index rose 3.5% in March from a year ago.
"It's very expensive. It's really hard to shop," Betty Dorc, a mother of four in West Palm Beach, said. "I've been shopping for a year since I've been here and everything really high."
The government report highlighted some of the higher prices that U.S. shoppers have experienced from March 2023 to March 2024:
- Beef is 7.6% higher
- Sugar and sweets are 4.3% higher
- Baby food is 9.9% higher
- Car insurance is up 22.2%
"You can kiss goodbye the idea the Fed is going to cut interest rates as soon as June," McBride said. "That's off the table."
The Federal Reserve is holding off until inflation can drop to about 2% before trimming back interest rates.