It's proving more difficult than originally expected to get inflation back to target. Take the US, for example, where the annual inflation rate accelerated for a second straight month, to 3.5%, in March (its highest reading since September)—compared to forecasts of 3.4%.

Or Australia, where our latest monthly read (in February) saw inflation tracking at 3.4%. The annual change in the consumer price index to the end of the December quarter was 4.1%. Analysts expect the inflation rate will moderate to 3.2% in the second quarter, before dropping between the RBA's 2-3% target in the third quarter.

So, if inflation remains stickier than we previously thought, what does this mean for rate cuts and the ultimate direction of markets?

Livewire spoke with Wilsons Advisory's David Cassidy to find out.

Note: This video was filmed on Tuesday 9 April 2024. You can read an edited transcript below.

https://www.livewiremarkets.com/wires...