JPMorgan Wealth Management’s editorial team flags record diesel costs as an inflation risk: the U.S. average hit $6.53 a gallon on Sept. 22, and diesel producer prices rose 24.1% in August, potentially adding freight costs to consumer prices later.
The alert came from the wealth arm’s editorial staff, not JPMorgan’s research desk. The Bureau of Labor Statistics said final-demand producer prices rose 0.4% in August and 5.4% over 12 months; diesel accounted for more than a third of that month’s increase in goods prices, while truck-freight transportation costs rose 2.0%.
Consumer figures were milder: food-at-home prices were unchanged in August and up 2.2% from a year earlier, while overall consumer inflation was 3.4%. Wayne Industries president Paul Russo told the Detroit News that the Michigan trucking firm was adding a 45% fuel surcharge to its rates.
