The March CPI report does not dissipate fears that the first two inflation readings of 2024 were just bumps along a relatively smooth disinflation path. Headline CPI inflation was stronger than expected in March, stabilizing at 0.4% mom for the second consecutive month against expectations for a 0.3% rate. Today’s reading is consistent with an annualized rate that is slightly below 5%. In year-on-year terms, inflation rose to 3.5% from 3.2%. The energy index rose 1.1% mom, with gasoline prices rising 1.7% mom after an increase of 3.8% in February. The food index rose 0.1%.