NPR News: 05-12-2026 9AM EDT

Consumer prices rose 3.8% on an annualized basis last month, according to the latest government report. This increase stems from higher costs linked to the war in Iran, which is also expected to feature in discussions during President Trump's trip to China today.

Inflation Tied to Iran War and US Views on China

The fresh inflation data shows prices climbing due to war-related disruptions, with the Iran conflict pinpointing as a key driver. This economic strain sets the stage for Trump's China visit, where trade and geopolitical tensions loom large. An NPR poll, conducted with the Chicago Council on Global Affairs and Ipsos over recent months, reveals Americans' mixed stance on China. Seventy-eight percent believe China seeks global dominance, especially economically. Yet, most favor maintaining strong trade ties and lowering tariffs to ease costs for US consumers. On the Iran war, respondents view it as harmful to both US and Iranian economies, but more say it advances China's geopolitical position than bolsters US national security. These findings underscore public wariness of China's rise alongside a pragmatic push for affordable trade.