U.S. inflation rose to 4.2% in May, the highest rate in three years, driven largely by a 23.5% surge in energy costs and a 40.5% jump in gasoline prices over the past 12 months. The consumer price index increased 0.5% from April, with energy accounting for more than 60% of that monthly gain. Wage growth remains stagnant, and household expectations around finances and credit access are deteriorating, according to the Federal Reserve Bank of New York's May 2026 Survey of Consumer Expectations. Financial experts recommend moving cash into vehicles that outpace inflation, such as high-yield savings accounts offering up to 4% APY, money market accounts, certificates of deposit, Treasury securities, municipal bonds, equities, and gold.
JPMorgan Chase & CoHigh inflation may lead to higher interest rates, which can boost bank net interest margins, but also risks economic slowdown and credit deterioration.