The Labor Department said the Consumer Price Index increased 0.4 percent last month, the largest gain since February 2013, after rising 0.1 percent in March. That took the year-on-year increase in the CPI to 1.1 percent from 0.9 percent in March.
The major U.S. stock market indexes slid back after rallying sharply on Monday. The Dow Jones Industrial Average was down 181 points, or 1 percent, at 17,530 by the close of trading, while the S&P 500 was down 19 points, or 1 percent, at 2,047, and the Nasdaq composite index was off 60 points, or 1.3 percent, at 4,716.
In general, higher interest rates make stocks less attractive investments relative to bonds.
Financial markets do not expect the Fed to hike rates again before September, given sluggish growth at the beginning of the year.
While the labor market has gained strength, inflation has stubbornly remained below the Fed's 2 percent target.
Asian shares stepped back on Wednesday after strong U.S. inflation data and comments from Federal Reserve officials rekindled the prospects of the central bank raising rates later this year.
Meanwhile, Japan's Nikkei .N225 was little changed, held up by stronger-than-expected reading in Japan's April-June GDP.
Reference: International Business Times, Reuters
Thai
Eng