📊 US CPI Hits 3-Year High — Inflation Back in Focus
US inflation rose to 4.2% in May 2026, up from 3.8% in April, matching expectations but marking the highest level since 2023.
Key Data: • CPI YoY: 4.2%
• CPI MoM: 0.5%
• Core CPI YoY: 2.9%
• Core CPI MoM: 0.2%
What’s driving it? ⚡ Energy prices surge amid geopolitical tensions
🏠 Sticky shelter costs keeping inflation elevated
Market Implications: Rate-cut hopes are fading fast. Markets are now pricing in a prolonged “higher-for-longer” Fed policy, keeping liquidity tight and volatility elevated.
Risk assets remain highly sensitive in this macro setup.
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