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Home » Iran and oil are not the only drivers of inflation. Prices are accelerating again in these other areas as well.
Economy

Iran and oil are not the only drivers of inflation. Prices are accelerating again in these other areas as well.

Leslie StewartBy Leslie StewartMay 12, 2026No Comments4 Mins Read
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Iran and oil are not the only drivers of inflation.
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American consumers are blaming the Iran war for the recent spike in inflation. But data shows that prices are rising in many areas, not just energy.

The Consumer Price Index rose a seasonally adjusted 0.6% in April, bringing the 12-month inflation rate to 3.8%, the Bureau of Labor Statistics said Tuesday. Annual inflation is currently running at its highest level in nearly three years.

“Consumers are doing their best to absorb higher energy costs, but they haven’t found much other relief,” said Brett Kenwell, U.S. investment analyst at eToro. “Inflationary pressures are not just occurring at the pump, they are appearing throughout the household budget.”

Tuesday’s report came just days after the University of Michigan released its lowest preliminary reading on consumer sentiment on record. According to the announcement, the rise in oil prices related to the Middle East conflict was the main factor undermining confidence.

But Tuesday’s CPI data shows consumers are facing sticker shock in other areas as well. Here’s where prices are rising rapidly:

housing

Apartments for rent in Albany’s Center Square neighborhood. A recent study found that wages are outpacing rental prices across the metropolitan area.

Timothy Fanning Albany Times Union | Getty Images

Shelter inflation rose 0.6% in April, representing a year-over-year increase of 3.3%.

In the housing sector, detached accommodation rose by 2.4% in April and by 4.6% over the 12 months. Tenant and home insurance rose 0.1% in April, bringing the annual inflation rate to 7.2%.

Economists have been closely monitoring housing inflation since economic data was lost during last year’s government shutdown. They warned that price changes in owner-equivalent rents (a hypothetical measure of how much property owners get for their homes and a key component of overall housing market inflation) were not being properly captured, leading to distorted measurements.

food

Mexican tomatoes line the shelves of a grocery store on July 14, 2025 in San Anselmo, California.

Justin Sullivan | Getty Images

Household groceries were 0.7% more expensive in April than in March, the biggest single-month increase since August 2022. Prices have increased by 2.9% compared to the same month last year.

Due to the rise in beef prices, uncooked ground meat increased by 2.7% in April, pushing prices up 14.5% year-on-year. Ahead of the summer grilling season, prices in Frankfurt are up 10.7% compared to the same month in 2025, partially boosted by a 5.8% increase from the previous month.

Tomatoes, which are primarily imported into the United States and are subject to President Donald Trump’s tariffs, soared 15.1% in April. This product is currently 39.7% more expensive than a year ago.

Coffee prices rose 2% in April due to supply concerns, bringing the 12-month increase to 18.5%.

shopping

Window covering costs rose 8.2% from a year ago, driven in part by a 0.9% increase from March to April. Tableware rose 1.6% in the same month, increasing annual costs by 15.4%.

Jewelry prices rose 3.7% in April, bringing the yearly increase to 16.1%. Watch prices increased slightly during the month, increasing by 8.8% year-on-year.

Footwear rose 1.4% from March to April, with prices up 4.2% from levels a year ago.

service

File photo: Clark resident Jen Valencia, still working part-time at Instacart, packs up her SUV after completing two orders at ShopRite in Clark, N.J., on Jan. 8, 2022.

Michael Loccisano | Getty Images

Inflation also hit some service-driven categories.

The cost of video and video game rentals and subscriptions increased 16.6% compared to a year ago, after rising 2.1% from March to April.

Delivery services recorded a 4.3% cost increase in April. It is currently 13.6% higher on a 12-month basis.

relief area

Aerial view of used cars for sale on the lot of a Hyundai dealership in Austin, Texas, April 7, 2026.

Brandon Bell | Getty Images News | Getty Images

Certainly, consumers have found respite in several other areas.

Smartphones rose 1% in April, but are still 12.4% cheaper than 12 months ago.

Used car and truck prices remained flat during the month, down 2.7% from the same month last year.

Men’s outerwear, which includes suits and sport coats, fell 2% from the same month. Prices are 7.1% lower compared to April 2025.

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Leslie
Leslie Stewart

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