While global equity markets have largely ignored the building inflationary pressures imbedded in the global economy, evidence of the negative impact from rising input prices began to unfold today. U.S. inflation for April (Headline CPI) rose by +3.8%, and Core Inflation (Ex Food & Energy) rose by 2.8% from the year ago period. As Goldman Sachs points out, more concerning is the fact that the 6-month rate of change in inflation is now +5%. Further, these increases are being driven by areas that affect consumers the most such as gasoline and food at home (groceries). And for the first time since April of 2023, inflation growth is outpacing wage growth, hampering consumer purchasing power.
May 12, 2026
While global equity markets have largely ignored the building inflationary pressures imbedded in the global economy, evidence of the negative impact from rising input prices began to unfold today. U.S. inflation for April (Headline CPI) rose by +3.8%, and Core Inflation (Ex Food & Energy) rose by 2.8% from the year ago period. As Goldman Sachs points out, more concerning is the fact that the 6-month rate of change in inflation is now +5%. Further, these increases are being driven by areas that affect consumers the most such as gasoline and food at home (groceries). And for the first time since April of 2023, inflation growth is outpacing wage growth, hampering consumer purchasing power.