Miodrag Ignjatovic E+ | David Paul Morris | Bloomberg | Getty Images
American consumers will spend more on everything from gasoline to hot dogs and hamburgers heading into the Memorial Day weekend as the Iran War reignites inflation.
Consumer inflation rose 3.8% in April from the same month last year, the highest annual rate since 2023, according to federal government data released this month. The prices of travel, entertainment and food have skyrocketed, draining the wallets of Americans as they mourn the illegal start of summer.
“They’re not going to like what they see,” said Stephen Juneau, chief U.S. economist at Bank of America. “There will be a lot of complaining this weekend when people are driving and at airports, or going to the store to buy.”
Consumer sentiment officially hit an all-time low in May, according to survey data from the University of Michigan released Friday. This vision was partly disrupted by the rise in oil prices during the Middle East war, which is almost three months old.
Elf and Beauty announced on Wednesday that it was postponing the price hike, saying its customers were “burdened” by higher fuel costs. McDonald’s Chief executive Chris Kempczinski warned earlier this month that fast food outlets were facing a “challenging situation” as inflationary pressures mounted.
Here are some of the places where Americans will pay big over the holiday weekend:
Food
Miami Beach, Florida, Publix grocery store, hot dog sausage packages, Nathan’s Hebrew National display.
Jeff Greenberg | General Pictures Group | Getty Images
Summer barbecues will be more expensive this year as the number of cows decreases and the cost of fertilizer jumps.
Ground beef and steaks increased by about 16% compared to 2025. Frankfurters cost about 11% more than last year.
Tomatoes are driving nearly 40% more buyers, while lettuce is up nearly 8% over the same period. Ingredients such as spices, seasonings, spices and sauces increased by about 4%.
Consumers who pick up desserts such as cakes, pastries or cookies will pay slightly more than 5% compared to last year.
Carbonated drinks are 3.7% more expensive than last year, while coffee prices have increased by more than 18%. Beer prices – which have seen a recent drop in demand – rose 2.2%.
Walking
Gasoline prices are displayed at a Shell gas station on May 21, 2026 in Mount Prospect, Illinois.
Scott Olson | Getty Images
A record number of travelers are expected to leave home this weekend, but will face rising travel costs after the war pushed up oil prices.
AAA expects 45 million Americans will travel at least 50 miles from home during the holiday season, up 0.4% from last year’s peak. More than 39 million people will travel by car, the organization found.
Gasoline prices have increased more than 28% year-on-year, federal data shows. Going into the weekend, the average price of a gallon of domestically uninsured gas was the highest in four years, according to AAA.
“The holiday weekend has added financial challenges this year,” said Kimberly Palmer, financial expert at NerdWallet. “Memorial Day weekend is typically peak driving time, which means consumers are looking for ways to save at the pump or cut other areas of their budget to pay for higher gas prices.”
Air fares increased by 20.7% from April 2025 to 2026, reaching the highest level since 2022. Carriers have said they will need to raise ticket prices with rising jet fuel costs after Iran closes the Strait of Hormuz, a key route for the world’s junk food.
Spirit Airlines cited high-cost jet fuel when it shut down operations earlier this month. Industry analysts say ticket prices could rise significantly without a budget airline in the market.
Hotels, motels and other forms of accommodation away from home will cost consumers 4.3% more than 12 months ago.
About 30% of respondents to a Bank of America survey said they would not change their summer travel plans because of high gas prices. But almost one in five said they planned to cut back on holidays or choose places closer to home.
For recreation
Klaus Vedfelt Getty Images
Americans who are choosing to stay put will also feel some of the inflationary pressures of previous summers.
Movie, theater or concert tickets are up 5.5% from last year. Unusually, tickets for sporting events are down 10% during the same period.
Price tags for bikes and other sports cars are 4.3% higher than last year.
People who want to get a small garden done will get 5% more on things like tools and hardware. Houseplants or flowers are up 6% over the past year.
