US Producer Inflation Tops Expectations as Diesel Costs Jump
Diesel fuel costs jumped 24.1% as higher energy prices pushed producer prices above economists’ forecasts, raising pressure on the Federal Reserve.
- On Thursday, the Department of Labor reported the Producer Price Index rose 5.4 percent year-on-year in August, exceeding the 5.3 percent forecast by MarketWatch and accelerating from 4.8 percent in July.
- Energy costs jumped 4.2 percent over the month, with diesel fuel surging 24.1 percent and squeezing United States businesses and households amid ongoing conflict disruptions.
- US-Israeli strikes targeting Iran in late February prompted Tehran to choke the Strait of Hormuz, a crucial transit route. Nationwide senior economist Ben Ayers noted supply chain disruptions "continue to add pressure to goods costs."
- The Federal Open Market Committee meets next week amid elevated rate-hike expectations. CMEGroup's FedWatch tool puts the likelihood of a 25 basis points rate hike at nearly 70 percent for the meeting.
- President Donald Trump faces growing political pressure ahead of November midterm elections as rising diesel costs frustrate farmers. The conflict has hit an impasse more than six months after it started, complicating his vow to lower oil prices.
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19 Articles
Rising prices at gas stations weigh on U.S. households and businesses
The Producer Price Index (PPI) increased 5.4% in year-on-year terms last month, the Department of Labor reported.
Channel News Asia
US producer inflation tops expectations as diesel costs jump
WASHINGTON: US wholesale inflation picked up more than expected in August, government data showed on Thursday (Sep 10), driven by higher energy costs in the month - particularly for diesel - as the US war with Iran continued.Rising prices at the pump are squeezing US households and businesses weeks ahead of k
The rise in energy costs, especially diesel, boosted the surge of wholesale inflation in the US in August, according to the government.The conflict with Iran and the closure of the Strait of Ormuz have fueled transportation, affecting homes and businesses before the elections.
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Core Producer Inflation Cools in August as Surging Energy Costs Drive Headline Prices Higher
Underlying U.S. producer inflation rose less than economists expected in August, even as sharply higher diesel, gasoline and other energy costs pushed the broader producer ... The post Core Producer Inflation Cools in August as Surging Energy Costs Drive Headline Prices Higher first appeared on [your]NEWS.
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