Annual inflation rate increased in March to 3.5%

The annual inflation rate for March was 3.5%, according to the federal government's Consumer Price Index report released Wednesday.

The rate increased 0.4% compared to February.

Analysts projected a 0.3% month-to-month increase, according to FinanceYahoo.com.

Higher energy costs contributed to the higher prices driven the increase.

The Bureau of Labor Statistic's CPI is a broad measure of the cost of goods and services costs across the economy.

March's numbers indicate inflation remains stubbornly high and will likely result in the Federal Reserve holding on cutting interest rates.