All eyes on Fed's next move as US inflation jumps to 5% in May

Beating analysts' expectations

Anna Fedorova
clock • 3 min read

US inflation jumped to 5% year-on-year in May from 4.2% in April, beating analysts’ expectations of a 4.7% increase, as the US economy continues its swift recovery from the shock of the pandemic.

Core inflation also increased to 3.8% year-on-year, more than the expected 3.5%, marking the fastest annual rate of increase since June 1992. The surge in core inflation is in part due to the successful vaccine rollout in the US, which has allowed consumers to spend their savings - J.P. Morgan Asset Management estimates that US consumers will have accumulated excess savings amount to a "whopping 12% of GDP" by the middle of the year. Bond markets seemed to shrug off the latest news, with 10-year US treasury yields up only slightly from closing at 1.49% yesterday (9 June) to 1.515% at ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Why managing retirement risk matters more than predicting markets

Why managing retirement risk matters more than predicting markets

'Helping clients understand, prepare for and navigate uncertainty'

Andy Brown
clock 12 November 2026 • 4 min read
Solving private markets risks 'almost mission impossible'

Solving private markets risks 'almost mission impossible'

Julius Baer’s Cyril Demaria-Bengochea speaks to Professional Adviser

Sophia Panayi
clock 12 November 2026 • 3 min read
Anthropic bankers preparing to increase IPO valuation to $1.5trn – reports

Anthropic bankers preparing to increase IPO valuation to $1.5trn – reports

Draft prospectus filed on Tuesday

Jack Roach
clock 11 November 2026 • 2 min read