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Rising shipping costs are a big reason

By Mark Huffman of ConsumerAffairs

• Grocery prices rose 0.7% in April, led by sharp increases in fruits and vegetables, beef, and nonalcoholic beverages.

• Fresh produce prices jumped 1.8% in a single month and are now up 6.1% over the past year.

• Beef prices surged 2.7% in April, helping push the meats, poultry, fish, and eggs category up 1.3%.

American consumers saw another jump in supermarket prices in April, with fresh produce, beef, and beverages posting some of the largest increases in the latest federal government inflation data.

The Bureau of Labor Statistics reports that the food at home index a measure of grocery store prices increased 0.7% in April after remaining flat in March. Five of the six major grocery categories tracked by the government increased.

The steepest monthly increase came from fruits and vegetables, which climbed 1.8% in April. Over the past 12 months, produce prices have risen 6.1%, making it one of the fastest-growing food categories in the Consumer Price Index basket.

Beef drives meat prices higher

Beef prices also continued to rise sharply. The CPI showed the broader meats, poultry, fish, and eggs category increased 1.3% during the month, driven largely by a 2.7% jump in beef prices.

Nonalcoholic beverages, including coffee and other drink products, rose 1.1% in April and are up 5.1% over the past year. Analysts have linked some of those increases to higher transportation and import costs, along with poor crop conditions in key producing regions.

Dairy prices rose 0.8% in April, although the category remains down 0.6% from a year ago. Cereals and bakery products posted a more modest 0.1% monthly increase and are up 2.6% annually.

One of the few areas where consumers caught a break was the other food at home category, which declined 0.4% in April.

Dining out isnt getting any cheaper

Overall, grocery prices are now 2.9% higher than a year ago, according to the CPI data. Restaurant prices also continued climbing, with food-away-from-home prices up 3.6% annually.

Economists say food price increases are tied to the surge in the price of diesel fuel since the start of the Iran war. They note that higher fuel costs are adding pressure throughout the food supply chain, increasing transportation, packaging, and production expenses.

The April CPI report showed gasoline prices rising 5.4% during the month and 28.4% over the past year.

Wholesale prices are also rising

There could be more bad price news in the weeks ahead. The Producer Price Index, a measure of inflation at the wholesale level, rose 1.4% in April, the largest one-month increase since March 2022.

Nearly three-quarters of the April advance in the index for unprocessed goods forintermediate demand can be attributed to prices for crude petroleum, which moved up 11.3%.

The indexes for raw milk, slaughter steers and heifers, natural gas, iron and steel scrap, and fresh vegetables (except potatoes) also rose. These higher wholesale costs normally get passed along to consumers at the retail level.

IRS warns taxpayers about fake CP53E notices targeting refund recipients

By Mark Huffman of ConsumerAffairs

• More than 1.4 million taxpayers have received IRS CP53E notices this year, creating confusion and fueling scam fears.

• The Taxpayer Advocate Service warns scammers are sending fake versions of the notices to steal banking and personal information.

• Consumers should never scan QR codes or click links in suspicious IRS letters and should instead go directly to IRS.gov to verify any notice.

Scammers are very good at noticing legitimate communications that ask for sensitive information. Lately, theyre exploiting confusion over a flood of CP53E tax notices from the IRS that are being mailed this year.

The notices are legitimate IRS letters sent when the agency cannot process a taxpayers refund through direct deposit because of missing, incorrect, or rejected banking information. But fraudsters are now sending convincing fake versions designed to steal financial data and personal information.

The issue has become widespread after the IRS mailed more than 1.4 million CP53E notices as part of the federal governments broader transition away from paper refund checks and toward electronic payments.

The surge in notices has left many taxpayers unsure whether the letters are real, especially because some recipients reportedly received notices despite owing taxes or not expecting refunds.

What the scam looks like

According to the Taxpayer Advocate Service and tax professionals, fake CP53E notices often include QR codes, suspicious phone numbers, or links to phishing websites that ask taxpayers to verify or update bank account information.

Scammers are relying on realistic-looking documents and the publics fear of refund delays to pressure victims into acting quickly. Some fake notices even use future dates or official-sounding labels to appear authentic.

Tax experts say consumers should be especially cautious about any notice that:

• Includes a QR code

• Requests sensitive information by phone, email, or text

• Uses threatening or urgent language

• Directs taxpayers to unfamiliar websites

How to verify a CP53E notice

The Taxpayer Advocate Service says the safest way to handle any IRS correspondence is to bypass links and QR codes entirely and manually type IRS.gov into a browser.

Taxpayers can then log into their IRS online account to verify whether the notice is legitimate and update banking information securely if needed.

The IRS also notes that employees cannot accept direct-deposit banking information over the phone.

Consumers who do not respond to a legitimate CP53E notice may still receive a paper refund check, although the process could take several additional weeks.

What to do if you suspect fraud

Consumers who believe they received a fake IRS notice should avoid responding and report the incident to the IRS phishing email address at phishing@irs.gov. This IRS webpage can help tell the real thing from a scam.

Anyone who has already shared financial information should immediately contact their bank and monitor accounts for suspicious activity. Experts also recommend filing reports with the Federal Trade Commission and the FBIs Internet Crime Complaint Center.

J.D. Power rates the big box stores on customer satisfaction

By Mark Huffman of ConsumerAffairs

• Menards ranked highest in customer satisfaction among home improvement retailers in the 2026 J.D. Power study.

• Rising prices are making shoppers more sensitive to value, even as retailers improve services and digital tools.

• Consumers spent an average of $1,617 on home improvement purchases this year, up $278 from 2025.

Consumers say Menards is their favorite home improvement retailer, according to the newly released J.D. Power 2026 U.S. Home Improvement Retailer Satisfaction Study. The chain earned the highest overall customer satisfaction score among major retailers.

Menards received a score of 690 on J.D. Powers 1,000-point satisfaction scale, ahead of The Home Depot at 679 and Ace Hardware at 673. The industry average was 672.

Menards primarily serves the Midwest and parts of the northern Great Plains. The chain has stores in about 15 states, with its strongest presence in Wisconsin, Minnesota, Iowa, Illinois, Michigan, Indiana, Ohio, Nebraska, Missouri, and the Dakotas. It has also expanded into Kansas, Kentucky, West Virginia, Wyoming, and recently, Pennsylvania.

The study found that consumers appreciate improvements in product availability, digital shopping tools, and expanded services such as rentals, delivery, installation assistance, and rewards programs. However, those gains were offset by growing frustration over higher prices.

Although there have been meaningful gains in most operational areas, shoppers cannot ignore the rising prices, Michael Taylor, senior managing director of travel, hospitality, retail, and customer service at J.D. Power, said in the report.

The average amount consumers spent at home improvement retailers climbed to $1,617 in 2026, an increase of $278 from the previous year, according to the study.

Where stores lost ground

J.D. Power said concerns about value for price paid and declining trust in retailers were the biggest drags on overall satisfaction this year. Even as companies invest more heavily in technology and delivery options, shoppers still value knowledgeable employees and in-store advice, the study found.

The research was based on responses from 2,231 customers who purchased home improvement products within the previous 12 months. The study measured satisfaction across eight categories, including customer service, product selection, digital tools, store experience, and return policies.

Various reports suggest buyers remain cautious

By Mark Huffman of ConsumerAffairs

• Higher mortgage rates have cooled what many economists hoped would be a stronger spring housing rebound, leaving sales mostly flat even as more homes come onto the market.

• Buyers are gaining slightly more leverage thanks to rising inventory and slower price growth, but affordability remains a major obstacle nationwide.

• Economists say the 2026 housing market is increasingly regional, with parts of the Midwest and Northeast outperforming formerly red-hot Sun Belt markets.

After showing signs of renewed momentum in March, the spring housing market appears to have lost steam as higher mortgage rates and persistent affordability challenges weigh on buyers.

A new Zillow market report found that home sales were essentially flat in April compared with a year earlier, while the number of newly listed homes rose for the first time this year at a faster pace than sales.

The report suggests the traditionally busy spring selling season has become more cautious, even as buyers finally gain access to more inventory after several years of extremely tight supply.

Housing inventory is building while buyer demand reverted to a more cautious stance, Zillow said in its April analysis.

More people are trying to sell houses

According to Zillow, more than 426,000 new listings hit the market in April, up 2.1% from a year earlier. Active inventory climbed 3.7% year over year to roughly 1.3 million homes. At the same time, home sales slipped 0.4%.

The market slowdown coincided with another rise in mortgage rates. After briefly dipping near 6% earlier this year, the average 30-year fixed mortgage climbed back above 6.3%, reducing affordability for many would-be buyers.

National Association of Realtors data show existing-home sales rose only 0.2% in April to a seasonally adjusted annual pace of 4.02 million homes, well below the long-term average pace of roughly five million homes annually.

Prices arent falling

Despite slower sales, prices remain elevated. The median existing-home price reached a record April high of $417,700, according to NAR data cited by multiple reports.

Still, there are signs that conditions are gradually improving for buyers.

Zillow reported that monthly mortgage payments on a typical home fell 3.4% from a year ago to $1,829, helped partly by slower home-value appreciation. Typical U.S. home values increased just 0.7% year over year in April.

Homes are also staying on the market slightly longer, giving buyers more time to negotiate. Zillow found the typical home went pending in 17 days, one day longer than last year.

Bright MLS reported that pending sales in its Mid-Atlantic territory rose 5.6% from a year earlier, helped by a temporary mid-April dip in mortgage rates and increased inventory. But economists caution that the broader national market remains fragile.

Builders arent that optimistic

Builder confidence has also weakened this spring. The National Association of Home Builders/Wells Fargo Housing Market Index fell in April as builders grappled with higher material costs, uncertain demand, and elevated financing costs.

Regional differences are becoming increasingly pronounced as well.Some formerly booming Sun Belt metros are now seeing price declines because of overbuilding and affordability pressures, according to recent Zillow forecasts. Meanwhile, more affordable Midwest and Northeast cities are attracting buyers and seeing stronger price gains.

Economists say the direction of the housing market for the remainder of 2026 may largely depend on mortgage rates.

If rates retreat closer to 6%, analysts believe pent-up demand could quickly revive sales activity. But if inflation and economic uncertainty keep borrowing costs elevated, the spring slowdown could extend into summer.

Nearly half expressed strong opposition

By Mark Huffman of ConsumerAffairs

• A new Gallup poll finds 71% of Americans oppose building AI data centers in their local communities, with nearly half strongly opposed.

• Environmental concerns especially water and electricity consumption were the top reasons cited by opponents.

• The backlash could complicate the rapid expansion of AI infrastructure as tech companies race to build more computing capacity.

Surveys have shown that many Americans are leery of artificial intelligence and the changes it may bring to modern life. So it shouldnt be much of a surprise that they also take a dim view of the massive data centers that make AI possible.

A growing number of Americans are resisting the expansion of AI infrastructure in their communities, according to a new Gallup survey that highlights mounting concerns about the environmental and economic impact of data centers.

The poll found that 71% of Americans oppose building AI data centers in their local area, including 48% who said they are strongly opposed. Just 29% expressed support for having such facilities nearby.

Worries about water and power consumption

Gallup said the findings reflect growing unease about the enormous amounts of electricity, water, and land required to power AI systems. Data centers have become a critical part of the technology industrys push into artificial intelligence, with companies including Microsoft, Google, Meta, and OpenAI investing billions of dollars in new facilities across the country.

The survey also found that environmental concerns are driving much of the opposition. About 46% of respondents said they worry a great deal about the environmental impact of AI data centers, while another 24% said they worry a fair amount.

In follow-up interviews, opponents most frequently cited heavy resource consumption, particularly electricity and water use. Others pointed to concerns about pollution, noise, increased traffic, higher utility bills, and the limited number of permanent jobs created by data centers.

Local governments react

The resistance is becoming increasingly visible nationwide. Several local governments have delayed or blocked data center projects in recent months amid public protests and zoning battles. According to reports tracking the industry, dozens of jurisdictions have enacted temporary bans or moratoriums on new facilities.

Public opposition to data centers now appears stronger than resistance to other major infrastructure projects. Gallup noted that 53% of Americans oppose having a nuclear power plant in their area significantly lower than opposition to AI data centers.

Researchers and policy experts say the backlash could pose a significant challenge for the technology industry as demand for AI computing power accelerates. AI systems require vast amounts of processing capacity, driving a construction boom in large-scale data centers across the United States.

Recent studies estimate that U.S. data centers already account for more than 4% of the nations electricity consumption, with AI expected to increase those demands substantially in the coming years.