Consumer Prices Rose More Than Expected in March

The Bureau of Labor Statistics announced this morning that its Consumer Price Index rose 0.6% last month and that was slightly higher than the 0.5% that analysts predicted. Year-over-year, headline CPI rose to 2.6% from 1.7% and that, too, was slightly greater than the 2.5% twelve-month rate that surveys suggested. Without food and energy, core CPI notched a 0.3% monthly rise versus estimates of 0.2% with the year-over-year rate rising to 1.6% from 1.3% against estimates of 1.5%. Earlier this morning, the National Federation of Independent Business reported that its Small Business Optimism Index rose to 98.2 from 95.8. Analysts were looking for 98.5.

Financial markets seem little influenced by this morning’s statistics with Treasuries still slightly off. The Long Bond is resting around 2.35% with the Ten-Year at 1.68%. The Two-Year’s early morning yield is 17 basis points. Later today, the Treasury will be selling $24B Thirty-Year bonds.

Meanwhile, crude oil is up about a half-dollar to $60.22 with gold little changed at $1,732. Equity futures are glowing a bit red.