The latest US CPI print notched slightly above forecasts reinforcing the sticky outlook for inflation and sapping hopes of a Fed rate cut before June. Headline inflation came in at 3.2% whilst core inflation which excludes food and energy prices came in at 3.8%. This topped estimates of 3.1% and 3.7% respectively. The tight labour market and strong consumer spending is not helping CPI budge below the 3% handle, despite proving the resilience of the US economy. For now, rates will remain elevated until the Fed is confident inflation is on its downward path to 2%. As such, markets may need to brace for more choppiness ahead should inflation continue to surprise to the upside, and if restrictive monetary policy begins to undermine US resilience.