BREAKING: Inflation Higher Than Expected As Consumer Price Index Rises 3.5 Percent in March

March inflation numbers surprised economists on Wednesday morning as the Consumer Price Index (CPI) numbers came in higher than expected.

CPI, which is a broad measure of the price of goods and services across the economy, rose 0.4 percent for the month, putting the 12-month inflation rate at 3.5 percent. That is 0.3 percentage points higher than in February and higher than economists were anticipating. They were looking for a 0.3 percent gain and 3.4 percent year-over-year level.

Core CPI, which excludes volatile food and energy costs, also came in higher than expected. It accelerated 0.4 percent month-to-month and 3.8 percent from a year ago. Experts were estimating 0.3 percent and 3.7 percent.

The spike appears to have been largely due to rising energy and shelter costs, according to the Bureau of Labor Statistics.

The index for shelter rose in March, as did the index for gasoline. Combined, these two indexes contributed over half of the monthly increase in the index for all items. The energy index rose 1.1 percent over the month. The food index rose 0.1 percent in March. The food at home index was unchanged, while the food away from home index rose 0.3 percent over the month.

For food, the cost of eating at home stayed relatively flat, but costs have gone up if you plan to eat out.

"The index for food away from home rose 4.2 percent over the last year," the BLS reported. "The index for limited service meals rose 5.0 percent over the last 12 months, and the index for full service meals rose 3.2 percent over the same period."

Prices for groceries, however, still remain uncomfortably high for consumers.

The gasoline index increased 1.7 percent in March, as well. This came after a 2.3 percent spike in February. The index for electricity, meanwhile, rose 0.9 percent in March. Natural gas was unchanged over the month, and the fuel oil index decreased 1.3 percent in March.

The motor vehicle insurance index rose 2.6 percent in March, while the medical care index rose 0.5 percent in March after being unchanged in February. The index for hospital services rose 1.0 percent over the month and the index for physicians' services increased 0.1 percent. The prescription drugs index rose 0.3 percent in March, as well.

The report may have an impact on the Federal Reserve's decision to cut interest rates. Today is also the day the Fed is expected to release the minutes from its latest meeting, which should give further insight into its plans for the interest rate.