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Americans lament soaring inflation driven by U.S.-Israeli war with Iran

“Prices are going up everywhere you look and families everywhere are struggling to keep up,” said Janelle Jones, a visiting senior fellow at the Century Foundation.

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May 12 (Reuters) – U.S. consumer inflation increased further in April, with the annual rate posting its largest gain in three years, heightening political risks for President Donald Trump and his Republican party ahead of November’s midterm elections.

The back-to-back rises in the Consumer Price Index reported by the Labor Department on Tuesday, reflected strong gains in the costs of energy products amid the U.S.-Israeli war with Iran. ‌

Food prices surged last month and inflation also spilled over to the services sector, with higher rental costs and airfares.

Trump won re-election in 2024 in large part because of his promise to reduce inflation, but Americans have soured on his handling of the economy and many blame him for the pain at the pump.

Rising inflation outpaced wage gains for the first time in three years, and underscored the financial strain on households.

With no end in sight to the conflict, economists warned prices would continue to push higher and broaden in the months ahead.

Trump on Monday proposed reducing the 18.4-cent federal gasoline tax to lower prices at the pump.

“Prices are going up everywhere you look and families everywhere are struggling to keep up,” said Janelle Jones, a visiting senior fellow at the Century Foundation.

“Measures like suspending the gas tax will provide short-term relief, but it’s robbing Peter to pay Paul. What families really need is an ⁠end to this war and leaders that are committed to ending the affordability crisis.”

The CPI increased 0.6% last month after surging 0.9% in March, the Labor Department’s Bureau of Labor Statistics said.

Economists polled by Reuters had forecast the CPI rising 0.6%. Estimates ranged from a 0.4% gain to a 0.9% increase.

The moderation after posting the largest increase since June 2022 was mechanical. Oil prices shot above $100 a barrel in March following strikes against Iran, before pulling back to still-high levels after a ceasefire in early April.

While the conflict’s impact was immediately reflected in more expensive gasoline, diesel and jet fuel, economists said the second-round effects were around the corner, including for goods trucked by road. Shipping disruptions in the Strait of Hormuz are straining supply chains.

A 3.8% increase in energy prices accounted for more than 40% of the rise in the CPI last month.

That followed a 10.9% jump in March. Gasoline prices rose 5.4% after a record 21.2% surge in March. Other motor fuels, which include diesel, increased 17.0%.

Consumers also paid higher prices for electricity amid strong demand from data centers to power artificial intelligence.

Food prices accelerated 0.5% after being unchanged in March.

Grocery store inflation shot up 0.7%, the largest increase since August 2022.

Beef prices increased 2.7%, the most since November 2024. Coffee prices rose 2.0%.

Fruits and vegetable prices climbed 1.8% while nonalcoholic beverages cost 1.1% more. There were also strong increases in the prices of dairy and eggs.

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International

Burnham becomes PM, vows 10-year plan to stabilise UK

The 56-year-old is the sixth prime minister to enter Downing Street in the last 10 years.

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•Incoming Prime Minister Andy Burnham poses with Britain’s King Charles III on July 20, 2026 (Photo by Aaron Chown / POOL / AFP).

Andy Burnham became British prime minister Monday after meeting King Charles III at Buckingham Palace and was set to set out his vision for the country after taking over from Keir Starmer.

In his first speech, Burnham vowed to put forward a 10-year plan for Britain, saying the country needed to make politics work.

“Britain needs to show the world that we can regain our stability once again,” Burnham said just after being appointed by King Charles III to take over from Keir Starmer.

He pledged to “issue my first instruction to end rough sleeping in our country” once he starts work.

Starmer departed Downing Street on Monday morning, insisting in a farewell speech his two years in office had made Britain a better place.

The monarch met Starmer to accept his resignation and Burnham arrived next for the formal procedure in which the king asked him to form the next government and he accepted.

The 56-year-old is the sixth prime minister to enter Downing Street in the last 10 years.

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US Vice President Vance announces birth of baby boy

The birth marks the latest addition to the Vance family. Vance and Usha got married in 2014 and previously had three children before welcoming their new son.

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United States Vice President JD Vance has announced the birth of his son, saying both the newborn and his wife, Usha Vance, are healthy.

The birth marks the latest addition to the Vance family. Vance and Usha got married in 2014 and previously had three children before welcoming their new son.

Vance made the announcement in a statement shared on Sunday, expressing gratitude to the medical personnel who assisted during the delivery.

Vance also paid tribute to the medical teams at Walter Reed Medical Centre and the White House Medical Unit for their care and support.

“We are excited to announce that our baby boy, Alec Neel Vance, was born this morning.

“Usha and the baby are happy and healthy, and our kids are overjoyed to meet their little brother,“ he said.

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Andy Burnham set to become Labour leader before taking over as UK PM

Burnham, who has since become known as the “king of the North,” returned to Westminster in June after securing a huge majority in the Makerfield by-election, comfortably beating out challengers from Nigel Farage’s Reform UK party and Rupert Lowe’s hard-right Restore Britain.

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• Andy Burnham / Euro News

Andy Burnham is set to be announced as the Labour Party’s new leader on Friday.

Euro News reports that the Makerfield MP is scheduled to be unveiled at a special press conference before taking over as the UK’s seventh prime minister in a decade on Monday.

Burnham is expected to deliver a speech during the conference where he will reportedly pledge to be “unashamedly Labour” and vow that his government will have the “courage to fix the big things that politics has neglected.”

Burnham was left with a clear path to Downing Street after his last potential leadership rival ruled out challenging last week.

He received 379 nominations from Labour MPs for the party leadership out of a possible 403.

His uncontested run has sparked concern from some analysts and government insiders, however, and opposition leader Kemi Badenoch has accused Labour of “running scared” of scrutiny.

It comes after Keir Starmer announced he was stepping down as PM last month, as pressure continued to build in the wake of Labour’s disastrous local election results in May.

Who is Andy Burnham?

Born on Merseyside in the northwest of England and raised in the village of Culcheth in Cheshire, Burnham has said he was first inspired to enter politics after watching “Boys From The Blackstuff,” an acclaimed 1982 TV show about five unemployed men in Liverpool navigating life in Margaret Thatcher’s Britain.

He went on to study English at the University of Cambridge before starting out in journalism, working for a number of trade publications.

He soon made the jump into politics, taking a job as a researcher for the late Tessa Jowell, a former MP for Dulwich, while in his early 20s.

He eventually became MP for Leigh in 2001, a position he held until 2017, and served in a number of senior ministerial positions, including as secretary of state for health and chief secretary to the Treasury. He unsuccessfully ran for the Labour leadership in 2010 and 2015, losing to Ed Miliband and Jeremy Corbyn, respectively.

In 2017, he took over as mayor of Greater Manchester, overseeing a period of huge growth and development and gaining a reputation for his loyal defence of the region during the Covid-19 pandemic lockdown.

Burnham, who has since become known as the “king of the North,” returned to Westminster in June after securing a huge majority in the Makerfield by-election, comfortably beating out challengers from Nigel Farage’s Reform UK party and Rupert Lowe’s hard-right Restore Britain.

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