Inflation in America is being powered by diesel.The price of the fuel, used by farmers and truckers, is up more than 75% since the start of the Iran war in late winter.Diesel costs have become a particular concern for economists, who say that higher diesel fuel costs trickle down into “just about everything.”And the final government inflation report before November’s pivotal midterm elections will likely reflect how much of a headache it’s become for businesses and consumers.The Bureau of Labor Statistics is set to release its September consumer price index report at 8:30 a.m.
Wednesday.It’s expected to show the annual rate of inflation rose to 3.7% from 3.4%, according to a survey of economists from Dow Jones.
From August to September, prices are expected to have risen by 0.6%.The monthly jump, if confirmed, would also be one of the largest in years.
Since August, oil prices have risen to more than $105 per barrel from about $80.The price of regular gas, which most consumers buy, also remains elevated by more than 45% since late February, when the Iran war was launched.
As early voting kicks off this week, a higher inflation reading would come at a precarious moment for Republicans defending majorities in the House and Senate.Polls consistently find that inflation and the high cost of living are top issues this year for voters in both parties.Higher diesel prices this summer and fall have hit agricultural states like Kansas, Iowa and Texas especially hard.
Long viewed as Republican strongholds, all three states have Democrats outperforming in Senate races with campaigns focused on the high cost of living.In response to the outcry over the high cost of gas and diesel, President Donald Trump has pulled several policy levers in recent weeks aimed at pushing down prices.But so far, none of them has made much of a dent.The Trump administration has pressured G7 allies to release more diesel stocks, issued an order to allow more widespread use of tax-free ...