Consumer prices rose 3.5% from a year ago in March, more than expected

The consumer price index increased at a faster than expected pace in March, indicating that inflation is staying stubbornly higher and likely keeping the Federal Reserve on hold with interest rates.

The CPI, a broad measure of goods and services costs across the economy, rose 0.4% for the month, putting the 12-month inflation rate at 3.5%. Economists surveyed by Dow Jones had been looking for a 0.3% gain and a 3.4% year-over-year level.

Excluding volatile food and energy components, core CPI also accelerated 0.4% on a monthly basis while rising 3.8% from a year ago, compared to respective estimates for 0.3% and 3.7%.