CPI Report Expected to Show Inflation Up in March, Though Core Price Rises May Be Slowing

• Consumer Price Index (CPI) report on March inflation due Wednesday, expected to show prices rose 3.4% annually and 0.3% monthly • Higher gas prices expected to have driven increase, while core inflation seen slowing slightly • Fed watching inflation data closely to gauge interest rate policy, though some data suggests rate cuts may not be imminent • Markets have lowered expectations for rate cuts this year from 6 to 2-3 cuts • Debate continues around whether Fed should cut rates soon to bring down inflation or let economy run hotter