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Hives frequently occur following an infection or as a result of an allergic reaction such as to medication, insect bites, or food. Psychological stress, cold temperature, or vibration may also be a trigger. In half of cases the cause remains unknown. Risk factors include having conditions such as hay fever or asthma.
Rashes Caused By Allergies. Hives. The most common allergic rash is hives, an extremely itchy rash that consists of raised large welts on the surface of the body, often circular with a pale center. Hives can result from an allergic reaction to medicines, foods, viral infections, or insect stings and bites. For localized itchy rashes, apply 1% hydrocortisone cream if the rash is not a result of fungus, chicken pox, or bacterial infection. 2  If your child has just started taking a new medicine, and develops a rash, consult your physician immediately.