The US Bureau of Labor Statistics reported on Friday that the inflation rate rose to 3.3 percent in March, up from 2.4 percent the previous month. This represents a 0.9 percent increase in prices for the third month of the year. The core inflation, which excludes energy and food costs, was recorded at 2.6 percent in March, up slightly from 2.5 percent in February.
Energy prices increased by 12.5 percent compared to the previous year, following a 0.5 percent rise the previous month. Central drivers behind this increase were likely related to the conflict in the Middle East, which began at the end of February. Food prices saw an annual increase of 2.7 percent (3.1 percent in February).
Investors pay close attention to US inflation figures because the rate is a critical indicator for the monetary policy of the Federal Reserve (Fed). High interest rates are generally considered detrimental to both the stock market and the real estate sector, partly due to the continued appeal of bank accounts as an investment alternative.