The sharp increase in consumer prices matched economist estimates. "The surge in energy prices helped drive headline CPI inflation up to a new 40-year high of 8.5% in March but, with base effects set to become much more favorable and signs that monthly gains in core prices are moderating, we expect that to mark the peak," said Andrew Hunter, Senior US Economist At Capital Economics. On Wednesday, the Labor Department is scheduled to release a separate report on producer price inflation in the month of March.