NPR News: 05-12-2026 12PM EDT

This NPR News Now update from May 12, 2026, rounds up economic fallout from the US war with Iran, Pentagon budget details ahead of President Trump's China trip, a new poll on US-China views and the war's effects, progress on tariff refunds, developments in an assassination case and public doubts about related incidents, a corporate lawsuit, and a brain-responsive hearing aid study.

Inflation and War Costs

The US war with Iran has pushed energy prices higher, contributing to annual inflation reaching 3.8% in April—the highest in about three years—according to the Labor Department. Consumer prices were up compared to the prior year, with the conflict directly cited as a driver.

The Pentagon is defending its $1.5 trillion request for the 2027 military budget. Jules Hearst III, the top budget official, told Congress that initial war cost estimates of $25 billion have risen to $29 billion due to updated repairs, equipment replacements, and ongoing operational expenses to keep forces in theater. Joint staff and comptroller teams continue refining the figure, though some analysts peg total costs much higher. These expenses are expected to factor into discussions during Trump's trip to China, which begins that afternoon.