Inflation Soars as Fed Holds Steady, While Geopolitics and High Prices Threaten Oil Demand

• The latest U.S. consumer price index revealed an increase of 3.5% for March on an annual basis.

• The Federal Reserve’s decision to delay the start of rate cuts will hold for longer than many must have hoped.

• If the ECB was reluctant to start cutting rates with an inflation rate of 2.4% in a month when energy prices fell, it is likely it would be even more reluctant to start cutting when energy inflation swells.

• Geopolitical developments in the Middle East are not helping, either.

• Analysts like to stress the fact that high inflation kills oil demand.