Inflation rose to 3.5 percent in March as prices were pushed up by the high cost of housing and gas. 

The data, released by the Department of Labor, was hotter-than-expected causing stocks to tumble amid fears it could delay the Federal Reserve‘s timeline for cutting interest rates which are already at a 22-year-high.  

The Dow Jones was at 38,961 when the data was released at 8.30am ET, and sunk in seconds to 38,619 and was 38,470 at 8.36am

Experts said the figures have effectively ruled out a cut to interest rates in the summer. 

Month-on-month, the Consumer Price Index (CPI) rose by 0.4 percent, according to figures released by the US Department of Labor. Gasoline and shelter costs, which include rents, accounted for more than half of the increase.

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