March CPI hits highest level in nearly two years at 3.3% year-over-year

Consumer price inflation accelerated to 3.3% annually in March from 2.4% in February, with monthly gains of 0.9%. Core CPI rose to 2.6% yearly. The sharp uptick reduces odds of near-term Fed rate cuts and pressures equity valuations. Traders should expect continued volatility in rate-sensitive instruments and potential USD strength.