April CPI came in hot, rising to 3.8% the highest level since May 2023. Core CPI also moved higher to 2.8%, beating expectations of 2.7%. With oil prices surging, inflation is starting to look uncomfortable again. Now the market is pricing in higher odds of Fed rate hikes.

The April CPI rose to 3.8%, its highest level since May 2023, while core CPI increased to 2.8%, exceeding expectations of 2.7%. This surge in inflation has led to higher odds of Fed rate hikes.