Diesel's surge is starting to push other prices around
SPY•September truck freight transportation costs rose 19% year over year, food input costs at two stages rose 15.6%, and toy prices posted their largest-ever monthly increase. The article says higher diesel costs are feeding through supply chains and may push consumer prices higher.
1. Freight costs rise
Truck freight transportation costs rose 19% year over year in September, the largest increase in just over four years. The article links the rise to diesel prices, which more than doubled over the past year, and says freight costs are responding faster than after the pandemic-era fuel surge.
2. Food inputs climb
Food input costs at stages one and two of intermediate demand rose 15.6% from a year earlier in September, the largest increase in about four years. Corn, hay and hayseeds, and oilseeds each rose more than 25% year over year. Oxford Economics senior US economist Matthew Martin said, “We expect a pickup in food inflation later this year.”
3. Toy prices jump
Toy prices, which the article says are exposed to higher shipping costs, rose in September by the most ever month over month. It also says materials for manufacturing are rising at double-digit annual rates, leaving producers to absorb those costs or pass them along.
