Stubborn US inflation dents hopes for imminent Fed interest rate cut

The consumer-price index, driven by fuel and housing costs, rose 0.4% from February, higher than the 0.3% expected

Global financial markets have scaled back expectations for an imminent cut in interest rates on both sides of the Atlantic after figures showed US inflation rose by more than expected in March.

Figures from the US Department of Labor show a jump in fuel and housing rental costs drove up the consumer price index (CPI) to 3.5% in March compared with a year earlier, higher than expected by Wall Street economists.