US Core CPI Surges Past Expectations, Posing Challenges for Fed's Rate Cut Plans

👉 Key Highlights:
📍 March CPI rises 0.4% monthly, pushing 12-month rate to 3.5%.
📍 Core CPI, excluding food and energy, also up 0.4% monthly, reaching 3.8% annually.
📍 Increases driven by shelter and energy costs, with shelter up 5.7% year-over-year.
📍 Food prices see modest 0.1% monthly increase, with annual rise at 2.2%.
📍 Used vehicle prices drop 1.1%, while medical care services rise 0.6%.
📍 Markets and Fed officials wary, awaiting evidence of inflation's return to 2% target.
📍 Futures market anticipates three Fed rate cuts in 2023, despite recent data.
📍 10-year Treasury yield rebounds above 4.5% after CPI exceeds estimates.