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Inflation ticked higher in March compared with 2023, and underlying price pressures remained strong, triggering questions about the Federal Reserve’s ability to cut interest rates in the next eight months, according to a report in The Wall Street Journal.

The consumer price index increased 0.4% in March on a seasonally adjusted basis, the same increase as in February, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the all items index increased 3.5% before seasonal adjustment.

The economy “seems to be settling in a confusing spot,” according to reporting in The Washington Post, with price increases above normal but other parts of the economy holding strong. The result is more uncertainty about what might happen next in an economy that is “still resisting the usual rules.”

The index for shelter rose in March, as did the data for gasoline. Combined, they contributed more than half of the monthly increase in the index for all items. The energy index rose 1.1% during the month while food was up 1%.

Excluding food and energy, the all items index rose 3.8% in the last year, which was larger than the 3.2% gain for the 12 months ending in February. The energy index increased 2.1% for the 12 months ending March 31, marking the first 12-month increase in that sector since the period ending Feb. 23. The food index was up 2.2%.

According to the WSJ, core prices increased 0.4% over a one-month period, which was above economists’ expectations at 0.3%.

Stock futures reportedly fell, and yields climbed on U.S. government bonds right after the CPI report was released. Additionally, data showed that inflation ticked higher than expected in January and February.

The unexpected bump in inflation has put extra focus on the March CPI analysis. Many financial experts have said a third straight month of increased inflation could result in a bigger shift in the Federal Reserve’s inflation policy.

Fed officials have described the volatile economic news as “bumps in the road” to their 2% inflation target, and they don’t derail the plans to cut interest rates this year. In February, it was estimated that there would be three cuts this year if inflation declined.

Employment data released April 5 showed that the economy added more jobs than expected in March, a potential sign that higher interest rates aren’t as restrictive as originally thought.