For one grocery chain, the cost to ship lettuce now tops the lettuce itself, showing how high fuel prices are sinking their teeth across the economy
Source: Fortune ·
"Higher gas prices are beginning to bite because, unlike earlier in the year, there's no offset this time around from fiscal policy."
From the source
The latest spike in fuel prices is harder to stomach than the one earlier this year as businesses and consumers have less capacity to absorb the shock, while fresh price data show inflation is spilling over beyond energy. While crude oil prices have somewhat moderated despite the Iran war re-escalating recently, refining constraints have kept gasoline and diesel costs high. Average diesel prices hit $6.30 a gallon Wednesday, up about 68% from before the Iran war, according to AAA. And because diesel is especially critical as an industrial fuel used in manufacturing, farming, and transportation, its price surge has been pervasive across sectors. The Labor Department’s consumer price index showed core inflation rose to 2.6% in September from 2.4% in August, signaling businesses are passing on more costs. Meanwhile, the retail sales report showed core spending outside gas stations rose just 0.2% as fuel took a bigger bite out of wallets. Those trends were backed up by the Federal…