US inflation reaches 13-year high of 2.6%

Highest level since 2008

The US rate of inflation has hit 2.6% in the 12 months to March, the highest level seen since 2008 and breaching the Federal Reserve's 2% target.

This inflation data is ahead of the consensus expectation and will likely compound some investors' fears that the outlook for US growth stocks is challenged. Should inflation continue to rise, many expect that the Federal Reserve will be forced to act and further hike rates. Such fears have already begun to weigh on markets. Yesterday, the Dow Jones index closed down at 34,269 after falling from an open of 34,572 as fears over inflation grew. Meanwhile the FTSE 100 also fell, closing at 6,939 after opening at 7,123. Willem Sels, CIO of private banking and wealth management at...