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US inflation jumps to three year high as April CPI surprises and rate cut bets wobble
Economy
Published on 12 May 2026
April CPI rises faster than traders expected
US consumer prices climbed briskly again in April, marking the largest annual inflation increase in nearly three years. The data extends a second straight month of faster price growth, raising fresh questions about whether the US Federal Reserve can justify an interest rate cut soon. Markets now weigh the CPI shock against the Fed’s inflation and jobs targets.
- April CPI showed faster year-on-year inflation growth than seen recently
- Inflation rose for a second consecutive month in the latest reading
- Rate cut expectations face new uncertainty after the CPI surprise
- Traders will refocus on the Fed’s next policy signal
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times