Inflation anxiety is gripping markets, with odds of hitting at least 4.5% this year jumping from 24¢ to 43¢ — a 19-point move reflecting growing concern about persistent price pressures. The surge comes as major forecasting institutions paint vastly different pictures: while the Fed projects 2.7% inflation for 2026, the OECD recently revised its forecast to 4.2%, citing Middle East conflict and tariff impacts. JP Morgan warns inflation could exceed 4% by year-end, driven by tariff pass-through effects, fiscal stimulus, and labor market tightening from immigration policy changes. Multiple Fed banks now project the federal funds rate staying elevated through 2027, with traders pricing in persistent above-target inflation. The 19-point odds spike suggests the market is increasingly skeptical of the consensus "soft landing" narrative, instead betting on an inflation resurgence that could force the Fed's hand.