Inflation Surges to 4.2%, Largest Jump Since 2024 Peak

Headline inflation rose 40 basis points in May 2026 to 4.2% annually, the biggest single-month gain since a 4.9% peak. The jump from 3.8% in April signals reacceleration rather than stabilization. Back-to-back months of 0.5%+ monthly gains matter most to rate markets. The June report due July 14 will determine whether this trend holds or reverses.