US inflation leaps to 3.8%

The World Business Report covers a surge in US inflation to 3.8% in April, its highest level in three years, driven by rising energy costs linked to the ongoing war in Iran. The spike has sparked market volatility, with US stock indices falling and the dollar strengthening, while gold prices dropped due to fears the Federal Reserve may hike interest rates later in the year. Globally, inflation is rising too, with Germany reporting 2.9% inflation, raising concerns about stagflation. In the UK, Prime Minister Keir Starmer faces mounting pressure, with 83 MPs calling for his resignation, leading to a sell-off in UK assets and record-high gilt yields. Meanwhile, Netflix is facing a lawsuit in Texas over alleged data collection and addictive design practices. In Japan, snack giant Calbee is switching to black-and-white packaging due to supply disruptions of nafta, a petrochemical used in ink, highlighting broader economic ripple effects across industries like construction and consumer goods. The Cannes Film Festival opens with a notable absence of Hollywood and UK films, attributed to industry-wide structural changes and challenges in funding art house cinema.