US inflation keeps September Fed hike on track

The US consumer price index fell short of economist forecasts for March, dragged down by the falling cost of energy.  Prices fell -0.1% for the month compared to the +0.3% forecasts. However, the core inflation data, which excludes food and energy, rose 0.2% in March, bringing the annualised figure to +1.8%.  The US dollar strengthened on the news by over 1 cent to as much as $1.505 against Sterling as it strengthens the expectation that the Federal Reserve is on track to hike interest rates in September.