Summary

April's hotter-than-expected inflation reading is likely to put the Fed on watch for higher energy costs creeping into other prices, a red line that, if crossed, could raise the possibility of interest rate hikes. The Consumer Price Index rose 3.8% in April , compared with expectations for a rise of 3.7%, and up from 3.3% in March. Energy prices accounted for 40% of the increase, while shelter and food also surged.

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