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Home Market Research Economy

It’s not just Iran and oil raising inflation. Prices also are reaccelerating in these other areas

by TheAdviserMagazine
4 months ago
in Economy
Reading Time: 4 mins read
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It’s not just Iran and oil raising inflation. Prices also are reaccelerating in these other areas
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U.S. consumers are blaming the Iran War for the recent inflation surge. But data shows prices are rising in more areas than just energy.

The consumer price index climbed 0.6% in April on a seasonally adjusted basis, bringing the 12-month inflation rate to 3.8%, the Bureau of Labor Statistics reported Tuesday. Annual inflation is now advancing at its hottest clip in nearly three years.

“Consumers are doing their best to absorb higher energy costs, but they’re not finding much relief elsewhere,” said Bret Kenwell, U.S. investment analyst at eToro. “Inflation pressure isn’t just at the pump, it’s showing up across the household budget.”

Tuesday’s report comes days after the University of Michigan released a record-low preliminary reading for consumer sentiment. Rising oil prices tied to the Middle East conflict were a key detractor on confidence, according to the release.

But Tuesday’s CPI data shows consumers are facing sticker shock in other areas. Here are some of the places where prices are rising fast:

Housing

An apartment for rent in the Center Square neighborhood of Albany. A recent study found that wages are outpacing rent prices across the Capital Region.

Timothy Fanning | Albany Times Union | Getty Images

Shelter inflation rose 0.6% in April, pushing its year-over-year increase to 3.3%.

Within the housing category, lodging away from home jumped 2.4% in April for a 12-month gain of 4.6% Tenant and household insurance ticked up 0.1% in April, placing its annual inflation rate at 7.2%.

Economists have been closely monitoring housing inflation since the economic data lapse during the government shutdown last year. They raised alarm that price changes for owners’ equivalent rent — a hypothetical measure of what property owners can get for their dwellings and a key factor in overall housing market inflation — were not adequately captured, leading to skewed readings.

Food

Tomatoes from Mexico are displayed on a grocery store shelf on July 14, 2025 in San Anselmo, California.

Justin Sullivan | Getty Images

Food at home was 0.7% more expensive in April than March, its largest one-month increase since August 2022. Prices are 2.9% higher year over year.

Uncooked ground beef added 2.7% in April, pushing price tags up 14.5% from a year ago, amid soaring cattle prices. Ahead of the summer grilling season, frankfurter prices are 10.7% heftier than the same month in 2025, lifted in part by a 5.8% gain month over month.

Tomatoes — a product that’s mostly imported to the U.S., making it a subject of President Donald Trump’s tariffs — soared 15.1% in April. The product is now 39.7% pricier than a year earlier.

Coffee prices, hit by supply concerns, jumped 2% in April, propelling its 12-month gain to 18.5%.

Shopping

Window coverings cost 8.2% more than a year ago, partially driven up by a 0.9% increase from March to April. Dishes and flatware climbed 1.6% in the month for an annual cost increase of 15.4%.

The price of jewelry added 3.7% in April, lifting its one-year increase to 16.1%. Watch prices ticked marginally higher in the month, creating a year-over-year jump of 8.8%.

Footwear gained 1.4% in March to April, boosting prices to 4.2% above where they sat a year ago.

Services

FILE PHOTO: Clark resident Jen Valencia still works part time for Instacart, packing her SUV after completing two orders at ShopRite on January 8, 2022 in Clark, New Jersey.

Michael Loccisano | Getty Images

Inflation also hit some service-driven categories.

Rentals and subscriptions of videos and video games cost 16.6% more than a year ago after rising 2.1% between March and April.

Delivery services posted a cost increase of 4.3% in April. It’s now 13.6% more than expensive on a 12-month basis.

Areas of relief

In an aerial view, pre-owned vehicles are displayed for sale at a Hyundai dealership lot on April 7, 2026 in Austin, Texas.

Brandon Bell | Getty Images News | Getty Images

To be sure, consumers found respite in some other areas.

While smartphones rose 1% in April, they are still 12.4% less pricey than 12 months ago.

Used car and truck prices held steady on the month and are down 2.7% compared with a year earlier.

Men’s outwear, a category that includes suits and sport coats, fell 2% on the month. Prices are 7.1% lower than in April 2025.

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