There were some encouraging signs in the March CPI report, including the first evidence that shelter inflation is slowing, but core prices still increased by 0.4% m/m which, on an annualised basis, is close to 5%. With core non-shelter services inflation still not showing any significant easing and core goods prices rebounding, the Fed is more likely to push ahead with a final 25bp interest rate hike at its next policy meeting in early May.
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