US Producer Price Index Climbs 5.4% Year-on-Year as Diesel Costs Surge During Iran War

Wholesale inflation in the United States accelerated more sharply than analysts anticipated in August, according to Department of Labour data released Thursday, with energy expenses — diesel in particular — driving the increase as the US war with Iran persisted. The Producer Price Index rose 5.4 per cent compared with the same month a year earlier, a marked jump from July's 4.8 per cent annual gain and slightly above the 5.3 per cent consensus forecast published by MarketWatch. Month-on-month, the index advanced 0.4 per cent, matching analyst expectations reported by MarketWatch. Energy costs climbed 4.2 per cent over the month, lifted chiefly by diesel fuel, which spiked 24.1 per cent, the Labour Department report said. Average diesel prices reached new records, with pump costs squeezing American households and businesses in the weeks before key midterm elections and adding pressure on President Donald Trump's administration. Diesel prices were displayed at a petrol station as they hit a record high in the US on September 4, according to an AP photograph.