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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

Zimbabwe Wins UN Security Council Seat for 2027-2028

The five countries were elected by the 193-member General Assembly to serve as non-permanent members of the Security Council for two-year terms beginning on January 1, 2027.

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Zimbabwe has been elected to a non-permanent, two-year term on the United Nations Security Council, the third time the country will be represented on the body mandated to maintain international peace and security.

Voice of Nigeria reports that the other countries that secured seats around the iconic horseshoe table are Austria, Portugal, Trinidad and Tobago, and Kyrgyzstan.

The five countries were elected by the 193-member General Assembly to serve as non-permanent members of the Security Council for two-year terms beginning on January 1, 2027.

Austria and Portugal won the two seats allocated to the Western European and other States (WEOG) Group, while Trinidad and Tobago and Zimbabwe were elected from the Latin American and Caribbean Group and the African Group, respectively.

Kyrgyzstan secured the Asia-Pacific seat after defeating the Philippines in four rounds of voting.

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International

Finland’s president says EU should expand to 40 states — including Canada

His comments come as the Trump administration’s actions, alongside Russia’s war with Ukraine, prompt some countries to reconsider the benefits of EU membership.

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Finland’s president Alexander Stubb

Finnish President Alexander Stubb has stressed the need for a much larger European Union, saying the 27-nation bloc should increase its membership to 40 states and named the U.K., Canada, Turkey, Norway and Iceland as potential candidates to join.

Stubb made the call at an energy conference in the Finnish capital on Wednesday.

His comments come as the Trump administration’s actions, alongside Russia’s war with Ukraine, prompt some countries to reconsider the benefits of EU membership.

Stubb told the Eurelectric Power Summit that “the window of opportunity” for EU enlargement “is quite short because when the war in Ukraine ends and perhaps when the U.S. administration changes, I don’t know, then people are going to take their foot off the gas pedal and start heckling about unnecessary stuff again.”

Stubb added that “European strategic autonomy or European geopolitical power” is “often based on size and scale and I think the best European policy ever has been European enlargement.”

“In this moment, we need to think big and geographically, we need to enlarge or at least create memberships which are flexible enough to bring in a sum total of 40 European states — or even non-European,” Stubb said.

Finland’s president said the EU should look to its western flank and bring the U.K., which left the bloc in 2020, back into the fold, or at least “as close as possible

.”Canada should be considered as another option, Stubb said. “Wouldn’t it be lovely if Canada was the 28th state of the European Union rather than the 51st state of the United States?”

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International

Iran Kuwait’s airport attack injures 63

Health ministry spokesman Abdullah al-Sanad said 25 ambulances were dispatched at Kuwait International Airport, adding that “63 injured individuals were received and distributed among hospitals.

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Today Wednesday June 3: Kuwait International Airport was hit by Iranian drones.

An Iranian attack on Kuwait’s airport wounded at least 63 people on Wednesday, the health ministry said, with authorities earlier reporting one person killed.

Health ministry spokesman Abdullah al-Sanad said 25 ambulances were dispatched at Kuwait International Airport, adding that “63 injured individuals were received and distributed among hospitals.

This includes serious injuries… including head wounds, cerebral hemorrhages, amputations and injuries resulting from explosions.”

An airport source told AFP that the death in Kuwait was an Indian national at the airport.

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