Actually, I think that acetaminophen (Tylenol) is the preferred pain reliever for diabetics, since high doses of aspirin can cause low blood sugar.
The pain that causes you to take the Tylenol could also contribute to your rise in blood sugar.
Be aware of the acetaminophen content of other over-the-counter and prescription products. You should avoid taking more than the recommended amount of acetaminophen per day. Too much acetaminophen may cause false urine glucose test results. (Talk to your doctor when you notice changes in your glucose levels while taking acetaminophen.)
Other medications may interact with acetaminophen. Talk to your doctor and pharmacist before taking any prescription or over-the-counter medicines, including herbal products while taking acetaminophen. Many formulations of acetaminophen are available alone and in combination products. Taking too much Tylenol can cause liver damage, and possibly kidney damage. However, I have never heard of it CAUSING diabetes.
Maybe you should take another test re your glucose level to see if the reading is the same. If it is, then I am sure your doctor will want to start you on some form of diabetic control.
Good luck.