Americans are feeling inflation's pinch into the holiday weekend. Here's where prices are rising the most

Rising inflation is increasing costs for Americans heading into Memorial Day weekend, driven in part by higher oil prices after the Iran war. U.S. headline inflation was 3.8% year-over-year in April, the strongest annual reading since 2023, while consumer sentiment hit a record low in May. Energy-driven transport costs have jumped sharply — gasoline is up over 28% year-over-year and airline fares rose 20.7% — feeding through to higher travel and lodging prices. Food categories also show large increases (ground beef/steaks up as much as 16%, coffee +18%, tomatoes ~+40%), squeezing consumer spending and pressuring companies exposed to discretionary consumption. The report underscores broader upward price pressure across travel, recreation and food, with implications for consumer budgets, corporate margins and central bank policy considerations.