Inflation hits two-year high in March

The Consumer Price Index increased 0.9% on a seasonally adjusted basis in March, after rising 0.3% in February, the U.S. Bureau of Labor Statistics reported Friday. Over the last 12 months, the all items index increased 3.3% before seasonal adjustment.

"CPI inflation reached a two-year high in March due to a surge in energy prices. Markets are optimistic that the worst is behind us, but there is still significant uncertainty on a number of fronts. Even aside from the main geopolitical outcome in the Middle East, it remains unclear how quickly producers can recover supply that has been taken offline,” said America's Credit Unions Chief Economist Curt Long. “Another risk is that a large portion of the elevation in energy prices could pass through to core inflation. FOMC members are understandably cautious about 'looking through' this episode, and a rate cut is unlikely in the near term. As consumer concern over affordability continues to ratchet up, credit unions provide needed relief by offering the best rates and lowest prices for financial services."