Inflation Stays Hot as Oil Surges and Earnings Take Center Stage (May 11 – 15, 2026, Recap)

Overview

Last week’s market focus was dominated by inflation, growth, consumer spending, commodities, and major corporate earnings. In the US, CPI and PPI data showed that price pressures remain elevated, while retail sales suggested consumers are still spending despite higher costs. In the UK, stronger GDP growth pointed to a healthier start to 2026, supported mainly by the services sector.

Across markets, oil prices moved sharply higher, while gold and silver came under pressure. Stock market performance was mixed, with major US indices mostly flat to slightly lower. On the earnings front, Vodafone, Cisco, and Alibaba drew attention, with Cisco standing out after better-than-expected results, while Vodafone and Alibaba faced pressure despite highlighting stronger long-term growth drivers.

Major Economic Indicators and Events in Review

Tuesday, May 12

15:30 – USA: CPI m/m (USD)

Prices went up again in April, but not as sharply as in March. Inflation rose 0.6% during the month, mainly because of higher energy, housing, and food costs.

Over the past 12 months, overall prices are up 3.8%, which means everyday living is still becoming more expensive than a year ago.

The biggest reason for the monthly increase was energy prices, followed by housing costs. Food prices also increased, especially groceries.

Some items did become cheaper in April, including new cars, communication services, and medical care, but overall, inflation is still moving higher.

The EUR/USD fell 0.39% on the day.

Wednesday, May 13

15:30 – USA: PPI m/m (USD)

Producer prices rose sharply in April, with the Producer Price Index for final demand increasing 1.4%, the biggest monthly gain since March 2022. On a yearly basis, producer prices were up 6.0%, showing that inflation pressures remain strong. Most of the increase came from higher service prices, while goods prices also rose. Core producer prices, excluding foods, energy, and trade services, increased 0.6% for the month and 4.4% from a year earlier.

The USD/JPY gained 0.15% on the day.

Thursday, May 14

09:00 am – UK: GDP m/m (GBP)

The UK economy grew by 0.6% in the first three months of 2026, picking up from 0.2% growth at the end of 2025. The services sector, which includes areas like retail, finance, and hospitality, was the main driver of growth, rising by 0.8%. For the whole of 2025, the economy grew by 1.4%, while 2024 growth was revised slightly lower to 1.0%. GDP per person also improved, meaning economic growth was stronger even after accounting for population changes.

The GBP/USD declined by 0.9%.

15:30 – USA: Retail Sales m/m (USD)

US retail sales rose by 0.5% in April 2026, showing that consumers continued to spend despite economic pressures. Sales were 4.9% higher than a year earlier, while total sales from February to April were up 4.4% compared with the same period in 2025. Online and other nonstore retailers saw especially strong growth, jumping 11.1% from last year. Restaurants and bars also recorded higher sales, rising 2.7% year-on-year.

The EUR/USD fell 0.35% on the day.

Commodities

1. Crude Oil
   Crude oil prices increased by 6.84% over the past week
2. Brent Oil
   Brent was up 9.22% compared to the previous week
3. Gold
   The precious metal Gold (XAUUSD) concluded the week on Friday with a 3.71% weekly decline
4. Silver
   XAGUSD decreased by 5.41% from last week

Stock Market

1. S&P 500 remained unchanged
2. DJIA was down 0.49%
3. NASDAQ 100 decreased by 0.52%

Top Gainers

1. Quantum Cyber N.V. (QUCY) 852.12%
2. Robo.ai Inc. (AIIO) 367.44%
3. HCW Biologics Inc. (HCWB) 271.16%

Top Losers

1. Haoxi Health Technology Limited (HAO) -96.92%
2. Elong Power Holding Limited (ELPW) -85.23%
3. Sunshine Biopharma, Inc. (SBFM) -72.94%

Company Earnings (May 11 – 15)

Tuesday, May 12: VOD (Vodafone Group Public Limited Company)

Wednesday, May 13: CSCO (Cisco Systems, Inc.)

Wednesday, May 13: BABA (Alibaba Group Holding Limited)

Vodafone reported stronger FY26 results, with revenue growth at the upper end of expectations and improved cash flow. The company also highlighted a better medium-term outlook, supported by growth in Africa and progress in the UK integration. However, Germany remains a concern, with profits expected to stay under pressure.

VOD shares declined by 9.38% over the past week.

Cisco Systems reported its Q3 2026 results on May 13, 2026, with earnings of $1.06 per share, beating analysts’ expectations of $1.03. Revenue rose 12.0% year-on-year to $15.84 billion, ahead of forecasts of $15.56 billion. The company’s trailing EPS was $3.08, with a P/E ratio of 38.38, while analysts expect earnings to grow 8.48% next year, from $3.42 to $3.71 per share.

CSCO shares jumped 22.41% in the last week.

Alibaba reported its AI and cloud business is gaining strong momentum, with cloud external revenue up 40% and AI-related product revenue growing at triple-digit rates for the 11th straight quarter. Management expects AI products to become the majority of cloud external revenue within about a year. However, heavy spending on AI infrastructure and quick commerce weighed on profits, with adjusted EBITDA down 84% and free cash flow turning negative. The company also highlighted strong quick commerce growth and approved an annual dividend of $1.05 per ADS (American Depositary Share).

BABA shares declined 5.33% over the last week.

Conclusion

Overall, the week showed that inflation remains a key concern, even as consumer spending and economic growth continue to show resilience. Stronger oil prices added to inflation worries, while precious metals and major stock indices struggled for momentum. Looking ahead, investors are likely to stay focused on inflation trends, central bank expectations, and whether corporate earnings can continue to support market confidence.