A worn US one dollar bill partially burning at one edge with curling embers, close-up shot from directly above on a dark wooden surface, dramatic warm orange light from the flame contrasting with deep shadows, shallow depth of field, fine smoke trailing upward.

US Inflation Hits 3-Year High as Real Wages Slip

By Oliver BennsMay 18, 2026

US consumer prices rose 3.8% in April from a year earlier, the highest reading in three years, with wage growth failing to keep pace with inflation for the first time since 2022. Producer prices climbed 6% year-over-year, the steepest jump since 2022, signalling more pressure to come down the supply chain. Energy drove roughly 40% of the monthly increase, with gasoline above $4.50 nationwide and over $6 in California amid the ongoing conflict with Iran. Odds of a US rate cut in 2026 have collapsed, with prediction markets now pricing the chance of a hike at 32%, up from under 10% at the start of the year.

Cerebras IPO Soars on UAE-Heavy Revenue Base

AI chipmaker Cerebras priced its IPO above range at $185 and opened at $350, raising roughly $5.5bn in the largest public offering of the year. The company doubled revenue to around $500m but now trades near 100 times sales, against Nvidia's 26 times. Disclosure shows 86% of revenue still comes from UAE-linked customers, with state-backed Mohamed bin Zayed University of AI accounting for 62% after G42's share fell from 85% to 24%. OpenAI has separately extended a $1bn loan at 6% interest and taken stock warrants alongside a chip supply deal.

Dating Apps Crater as Young Users Tune Out

Match Group's paying users fell 5% and Bumble's dropped 21% in the latest quarter, with Bumble's revenue down 14%. The average US date now costs $189, up nearly 13% year-over-year, while Americans are going on roughly 12 dates a year, down from 14. Roughly three-quarters of young single women and nearly two-thirds of young single men reported little or no dating in the past year, with AI companions and porn increasingly substituting for relationships.

Ad Spend Risk Looms Over Big Tech Multiples

A 2022-style deceleration in US consumer spending could squeeze digital ad budgets that still drive 97% of Meta's revenue and roughly 75% of Alphabet's. In 2022, Meta's revenue fell about 4% and its market value dropped 77% over twelve months as advertisers pulled back. Half of Nvidia and Broadcom's revenue comes from five hyperscalers, leaving the broader market exposed if AI capex guidance softens alongside ad spend.