High gasoline prices don't just hit you at the pump: the extra fuel costs are pushing up prices for everything from airfare to eggs.

High Fuel Prices Were Contagious In April, Pushing Up All Kinds Of Costs

Diccon Hyatt

Full Bio Diccon Hyatt is an experienced financial and economics reporter. He's written hundreds of articles breaking down complex financial topics in plain language, emphasizing the impact that economic currents would have on individuals' finances and the market. He has a Bachelor's degree in English from the University of Delaware.

Learn about our editorial policies

Published May 12, 2026

04:01 PM EDT

An employee restocks eggs at an H-E-B grocery store on May 11, 2026 in Austin, Texas.

Fuel prices are pushing up costs on all kinds of goods, as transportation costs are passed on to consumers. Brandon Bell / Getty Images

Key Takeaways

The war-related fuel price surge is bleeding into other prices, April's consumer price report showed.
Economists saw evidence that inflation was already spreading to air fares, eggs, and even housing just two months into the conflict.

Get personalized, AI-powered answers built on 27+ years of trusted expertise.

High gasoline prices due to the Iran war don't just hit you at the pump: the extra fuel costs are pushing up prices for everything from airfare to eggs.

Tuesday's report on April inflation from the Bureau of Labor Statistics showed a widely expected surge in fuel costs and a higher-than-expected jump in "core" prices, which exclude the volatile prices for food and energy.

What This Means For The Economy

Accelerating inflation is one of the economy's biggest stumbling blocks and could prevent the Federal Reserve from cutting interest rates anytime soon.

Economists saw red flags that the price hikes are having a ripple effect on many other prices for everyday purchases. Here's what they are saying:

Jake Krimmel, senior economist at Realtor.com:

"Airline fares rose 2.8% on the month, and apparel and household furnishings both increased, pointing to early signs that the energy shock is bleeding through into core prices via fuel costs and Strait-related supply chain disruptions ... What started as an energy story is beginning to turn into something broader, something that we've been calling inflation contagion."

Kurt Rankin, senior economist at PNC:

"The spike in fuel prices resulting from the U.S. and Israel’s conflict with Iran has already begun to bleed through to non-energy consumer categories. As fuel is necessary to move goods to market, and energy in general is necessary to run operations, it is always only a matter of time until Core CPI inflation reacts to shocks like the current oil price spike."

"Consumers ultimately pay higher prices as producers and retailers pass on their own higher costs to their customers. That process is already underway, according to the April 2026 Core CPI numbers."

David Royal, chief financial and investment officer at Thrivent:

"Grocery prices, which had actually declined last month, spiked 0.7% in April—likely reflecting increased transportation costs as a result of higher oil prices. The increase was driven almost entirely by meat, eggs, fruits and vegetables."

Related Education

[Inflation: What It Is and How to Control Inflation Rates

](https://www.investopedia.com/terms/i/inflation.asp) [Oil Refineries: How They Work and Their Key Functions

Exxon Mobil Refinery in Baton Rouge, Louisiana, seen from the top of the Louisiana State Capitol. ](https://www.investopedia.com/terms/o/oil-refinery.asp)

Preston Caldwell, chief U.S. economist at Morningstar:

"Energy is a major input into food production and transportation. Hence, rising oil prices are starting to flow through into inflation beyond the direct impact of consumer purchases of gasoline, but also via non-energy goods for which oil is an input. Another example is airline fares, which jumped 2.8% in April.

Scott Anderson, chief U.S. economist at BMO Capital Markets:

"The unfavorable and larger-than-expected jump in core prices shows pressures are now spreading beyond energy, transportation, and food, into larger categories such as services and housing. If the energy price shock doesn’t subside soon, we can expect more of the same in the months ahead."

Katherine Judge, senior economist at CIBC:

"This data only includes the first signs of broader spillover from the oil price shock into core components, and annual inflation is set to move higher in May."

Do you have a news tip for Investopedia reporters? Please email us at

tips@investopedia.com

Get personalized, AI-powered answers built on 27+ years of trusted expertise.

Sponsored

Compete Risk Free with $100,000 in Virtual Cash

Put your trading skills to the test with our
[FREE Stock Simulator.](https://adclick.g.doubleclick.net/pcs/click?xai=AKAOjssV3I5ZlGD4ZuhtY6AonP8z40hhhuhGNM1ATJVeD0-ki0h4bHaHjaqEzubhPGMMORNXN3Cnhz-kcp6sTih-ph99zgqyRNbOvA5p5xg_tNnhwLR9g8tLQkwd5gBCvQqvZZbdbsW6-zwWV5J_nRMgg4YNncRxG6vxqci-RaF1k7xS6GwAlWwhbNyWxeCoDtzIOM5lyvIRZkXZqTdzs-EVHQFg2Qd5DwRauV1WHgikG1OnZuIkUOXVFwgx87ygFxcKh3f0BbfWTfh7MQwk-Yrx-4tXUXnLMhaUAcQCBZ36BjdmYPuTlu0a7cA2y1e5NtSlf72wyx7zP1WAnnq-vW4cQKVQRSYHhZrJgI8g8Phd2xtrmF0Wo8fdNNip2cvB2u7yxhR95Ycx9q9KyhB-zTVR1nl5hTAhn670Br7nXGCE7dW1uXZsWUYI&sai=AMfl-YTOdpalTlVikpodvCb30iVXFLuREM3mhxF-lliWWRlKWIgTLE-E6J5f3wjZ7PLM_SYX50_vLfsYgxu0kjn--CnmTPIhpE-vKuN9CRFymvGFrKpaEsqR28sLwBb4hSWbi_AhIeNM-DSFMpXSt50yQdxTtLaGNRE1X_mQZ6CVIpMewtTeiGjdfaaOiz3N-YkBNEti_0k4R0mpAfJSPiDx8qUnf7gl-c8M7xbsUbWE3XqMdS61ORAYoj0BT6zDHX4vUc441aL3hbz-zn-ucHb47qT-PCzai6Bkj4_lmMwWzZgYRXxpsoDke_laSTuOjAHQEJdBbWnSBYeGuqfQO5xh3W60qSqSMu3C0ZMvFpd9zNm8S0TvltujIGEYBrc2MFjKs3zonGFHwrcyuOaV_ndnX12eG2kEg3XiUPGQrSd_3UDQx91ysn0oxiUiG3udvxub7jhFhKifMJpe9ZEHtQPJ39C1-KYdTfk&sig=Cg0ArKJSzBsndsHl8jRBEAE&fbs_aeid=%5Bgw_fbsaeid%5D&urlfix=1&adurl=http://www.investopedia.com/simulator/?source=dfp-ros-sim&subid=dfp-ros-sim)
Compete with thousands of Investopedia traders and trade your way to the top! Submit trades in a virtual environment before you start risking your own money.
[Practice trading strategies](https://adclick.g.doubleclick.net/pcs/click?xai=AKAOjssV3I5ZlGD4ZuhtY6AonP8z40hhhuhGNM1ATJVeD0-ki0h4bHaHjaqEzubhPGMMORNXN3Cnhz-kcp6sTih-ph99zgqyRNbOvA5p5xg_tNnhwLR9g8tLQkwd5gBCvQqvZZbdbsW6-zwWV5J_nRMgg4YNncRxG6vxqci-RaF1k7xS6GwAlWwhbNyWxeCoDtzIOM5lyvIRZkXZqTdzs-EVHQFg2Qd5DwRauV1WHgikG1OnZuIkUOXVFwgx87ygFxcKh3f0BbfWTfh7MQwk-Yrx-4tXUXnLMhaUAcQCBZ36BjdmYPuTlu0a7cA2y1e5NtSlf72wyx7zP1WAnnq-vW4cQKVQRSYHhZrJgI8g8Phd2xtrmF0Wo8fdNNip2cvB2u7yxhR95Ycx9q9KyhB-zTVR1nl5hTAhn670Br7nXGCE7dW1uXZsWUYI&sai=AMfl-YTOdpalTlVikpodvCb30iVXFLuREM3mhxF-lliWWRlKWIgTLE-E6J5f3wjZ7PLM_SYX50_vLfsYgxu0kjn--CnmTPIhpE-vKuN9CRFymvGFrKpaEsqR28sLwBb4hSWbi_AhIeNM-DSFMpXSt50yQdxTtLaGNRE1X_mQZ6CVIpMewtTeiGjdfaaOiz3N-YkBNEti_0k4R0mpAfJSPiDx8qUnf7gl-c8M7xbsUbWE3XqMdS61ORAYoj0BT6zDHX4vUc441aL3hbz-zn-ucHb47qT-PCzai6Bkj4_lmMwWzZgYRXxpsoDke_laSTuOjAHQEJdBbWnSBYeGuqfQO5xh3W60qSqSMu3C0ZMvFpd9zNm8S0TvltujIGEYBrc2MFjKs3zonGFHwrcyuOaV_ndnX12eG2kEg3XiUPGQrSd_3UDQx91ysn0oxiUiG3udvxub7jhFhKifMJpe9ZEHtQPJ39C1-KYdTfk&sig=Cg0ArKJSzBsndsHl8jRBEAE&fbs_aeid=%5Bgw_fbsaeid%5D&urlfix=1&adurl=http://www.investopedia.com/simulator/?source=dfp-ros-sim&subid=dfp-ros-sim)
 so that when you're ready to enter the real market, you've had the practice you need.
[Try our Stock Simulator today >>](https://adclick.g.doubleclick.net/pcs/click?xai=AKAOjssV3I5ZlGD4ZuhtY6AonP8z40hhhuhGNM1ATJVeD0-ki0h4bHaHjaqEzubhPGMMORNXN3Cnhz-kcp6sTih-ph99zgqyRNbOvA5p5xg_tNnhwLR9g8tLQkwd5gBCvQqvZZbdbsW6-zwWV5J_nRMgg4YNncRxG6vxqci-RaF1k7xS6GwAlWwhbNyWxeCoDtzIOM5lyvIRZkXZqTdzs-EVHQFg2Qd5DwRauV1WHgikG1OnZuIkUOXVFwgx87ygFxcKh3f0BbfWTfh7MQwk-Yrx-4tXUXnLMhaUAcQCBZ36BjdmYPuTlu0a7cA2y1e5NtSlf72wyx7zP1WAnnq-vW4cQKVQRSYHhZrJgI8g8Phd2xtrmF0Wo8fdNNip2cvB2u7yxhR95Ycx9q9KyhB-zTVR1nl5hTAhn670Br7nXGCE7dW1uXZsWUYI&sai=AMfl-YTOdpalTlVikpodvCb30iVXFLuREM3mhxF-lliWWRlKWIgTLE-E6J5f3wjZ7PLM_SYX50_vLfsYgxu0kjn--CnmTPIhpE-vKuN9CRFymvGFrKpaEsqR28sLwBb4hSWbi_AhIeNM-DSFMpXSt50yQdxTtLaGNRE1X_mQZ6CVIpMewtTeiGjdfaaOiz3N-YkBNEti_0k4R0mpAfJSPiDx8qUnf7gl-c8M7xbsUbWE3XqMdS61ORAYoj0BT6zDHX4vUc441aL3hbz-zn-ucHb47qT-PCzai6Bkj4_lmMwWzZgYRXxpsoDke_laSTuOjAHQEJdBbWnSBYeGuqfQO5xh3W60qSqSMu3C0ZMvFpd9zNm8S0TvltujIGEYBrc2MFjKs3zonGFHwrcyuOaV_ndnX12eG2kEg3XiUPGQrSd_3UDQx91ysn0oxiUiG3udvxub7jhFhKifMJpe9ZEHtQPJ39C1-KYdTfk&sig=Cg0ArKJSzBsndsHl8jRBEAE&fbs_aeid=%5Bgw_fbsaeid%5D&urlfix=1&adurl=http://www.investopedia.com/simulator/?source=dfp-ros-sim&subid=dfp-ros-sim)

Partner Links