Inflation runs hot for third straight month, driven by gas prices and rent

Inflation remains the stickiest of problems for the U.S. economy, with the March consumer price index coming in hotter than expected — the third straight month that prices have accelerated. Gasoline prices and rent contributed over half the monthly increase, the government said on Wednesday.

Prices in March rose 3.5% on an annual basis, higher than the 3.4% expected by economists polled by financial data services company FactSet. It also represents a jump from February's increase of 3.2% and January's bump of 3.1% on a year-over-year basis. 

The latest acceleration in prices complicates the picture for the Federal Reserve, which has been monitoring economic data to determine whether inflation is cool enough to allow it to cut interest rates. But inflation, which measures the rate of price changes in goods and services bought by consumers, has remained stubborn in 2024, stalling the progress made last year to bring down the annual growth rate to the Fed's goal of 2%.