Rise in Inflation, surge in gas and housing costs

INDIANA – The latest reading of prices at the consumer level came in higher than expected Wednesday, showing a rise in inflation.

US stocks fell sharply after the Consumer Price Index showed a 3.5% price increase for the 12 months ending in March. The Dow closed 422 points lower, the S&P 500 lost 1%, and the Nasdaq Composite fell by 1%.

The Bureau of Labor Statistics said prices rose in almost every major category last month, with surging gas and housing costs playing a significant role.

Investors worry that the hotter-than-expected report will push back the Federal Reserve’s timeline for the rate cuts it has been hinting would come this year.