U.S.September PPI is expected to rise month over month 0.6%, while diesel prices are up more than year over year 70%

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U.S.September PPI is expected to rise month over month 0.6%, while the cost pass-through pressure from high diesel prices remains a focus.

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⚡️U.S.September PPI is expected to rise 0.6%, while diesel prices are expected to surge by more than year over year 70%, and inflationary pass-through pressures have not yet ended

BlockBeats reports that October 15, the U.S.September Producer Price Index (PPI) will be released at October 15 Beijing time on 20: 30 The U.S.August diesel prices rose 24%month over month and 77%year over year, according to American Automobile Association data. Diesel retail prices September 22 briefly rose to 6.528 USD, a record high, and still stood at 6.30 USD as of Wednesday, up more than 70%from the same period last year. Oxford Economics expects U.S.September PPI to rise 0.6%month over month, above the market expectation of 0.5%and August of 0.4%.

Analysts point out that diesel is an important input for road freight, rail transport, and agricultural production. Rising prices first push up companies' production and transportation costs, then gradually pass through to consumers via fuel surcharges, transportation contracts, and retail pricing. Even if diesel prices stop rising, cost pass-through may still lag, meaning that inflationary pressures have not yet fully emerged.

The Trump administration has taken measures to ease fuel supply pressures, including temporarily relaxing some restrictions on agricultural fuel use, and has said that Russia will supply diesel to global markets. Industry insiders, however, believe these measures will be unable to resolve refining-capacity and refined-product supply bottlenecks in the short term. The market will watch whether this PPI can further confirm that the energy-cost shock is spreading to prices on the business side.

Original link https://m.theblockbeats.info/flash/372014

Key points

U.S.September PPI will be released at October 15 Beijing time on 20: 30.
U.S.August diesel prices rose 24%month over month and 77%。
diesel retail prices September 22 briefly rose to 6.528 USD, and remained at 6.30 USD as of Wednesday, up more than 70%。
Oxford Economics expects U.S.September PPI to rise month over month by 0.6%, above the market expectation of 0.5%and August of 0.4%。
The article says that rising diesel prices will push up companies' production and transportation costs and may pass through to consumers via fuel surcharges, transportation contracts, and retail pricing.
The article says that the Trump administration has taken measures to ease fuel supply pressures, including temporarily relaxing some restrictions on agricultural fuel use, and has said that Russia will supply diesel to global markets.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

PPI measures price changes at the production stage. The article expects the U.S.September PPI increase to exceed market expectations and believes that rising diesel prices may increase companies' production and transportation costs, subsequently affecting consumer prices.

Why it matters to readers

If diesel costs continue to pass through, companies' costs and retail pricing may face greater pressure; the market will watch whether the actual PPI shows that the energy-cost shock is spreading to prices on the business side.

This means that more expensive fuel may first affect transportation and production, then gradually affect commodity prices. The article provides a forecast; the actual PPI result does not appear in the evidence.

Risks and unknowns

U.S.September PPI actual value and its deviation from the 0.5%market expectation do not appear in the evidence.
The actual effects of diesel supply, refining capacity, and related policy measures have not been substantiated by evidence.
Whether the increase in diesel prices will continue to be passed through to prices paid by businesses and consumers remains to be validated by subsequent data.
The statement in the text regarding Russia’s supply of diesel is not supported by further evidence.

U.S.September PPI is expected to rise month over month 0.6%, while diesel prices are up more than year over year 70%

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