Breakfast Briefing | 11 June 2026 | US Inflation Hits Two-Year High

US consumer inflation accelerated to 4.2% in May, up from 3.8% in April and its highest since April 2023, driven largely by rising fuel costs. With Washington now promising further military strikes on Iran and an expected deal off the table, oil markets are bracing for deeper disruption. US crude rose to just under USD 91.50/bbl, with Brent near USD 94.50/bbl.The inflation story is global. Japan's producer prices rose 6.3% over the year to May, the fastest since the pandemic eased, while China's factory-gate prices jumped 5.8% even as consumer inflation stayed subdued at 1.2%. Canada held its policy rate at 2.25% for a fifth consecutive meeting.For Australia, the timing is awkward. The emergency petrol tax concession is set to expire at the end of June, and without an extension it would add to inflation just as global fuel costs climb, keeping pressure on the RBA. The local 10-year bond yield starts the day at 4.90%.Markets at a glance: AUD 70.1 USc, US 10-year Treasury 4.54%, gold down to USD 4,098/oz, and bitcoin steady at USD 61,781.Read the full Briefing with all source links at interest.com.au.https://www.interest.com.au/economy/709/us-trapped-iran-quagmire-us-inflation-rises-oil-stocks-retreat-canada-holds-japan-ppi#BreakfastBriefing #USInflation #InterestRates #AustralianEconomy #RBA #OilMarkets #BondYields #GlobalEconomy #Inflation #interestcomau