---
title: "Inflation surge deepens as Fed faces rate hike dilemma"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287584795.md"
description: "Inflation continues to rise, with April CPI increasing by 3.8% annually and PPI up 6%, indicating widespread inflationary pressures. Consumer sentiment has dropped to a 70-year low due to high prices and uncertainty from the war. Markets now anticipate a 68% chance of a Fed rate hike in 2026, shifting from previous expectations of rate cuts."
datetime: "2026-05-26T05:25:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287584795.md)
  - [en](https://longbridge.com/en/news/287584795.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287584795.md)
generator: "portal-rs"
---

# Inflation surge deepens as Fed faces rate hike dilemma

Prices keep rising: April CPI rose 3.8% annually, with PPI up 6%, signaling broad inflation pressures from energy to retail goods. Confidence hits lows: Consumer sentiment fell to its lowest in 70 years as high prices and war-driven uncertainty weigh on household budgets. Fed rate hike odds: Markets now price a 68% chance of a Fed rate increase in 2026, reversing earlier expectations of cuts.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**