A surge in energy costs is expected to drive overall U.S. consumer inflation higher, with September numbers seen at 0.6% on a monthly basis by economists polled by Reuters. The official CPI data for September is due out later today.
Gasoline prices in the United States went up by 7.1% last month, with the latest daily average national price at $4.3413 per gallon, according to AAA. This is close to what the average was a month ago, with the difference at $0.028 per gallon. Diesel prices, however, remain stubbornly high, at above $6 per gallon, although they are off their all-time high of over $6.50 per gallon.
Another Reuters poll suggested that well over two-thirds of Americans, or 78%, are blaming Trump policies for the rise in the cost of living. Among specific policies, respondents in the poll noted the war in Iran and tariffs on imports.
“People care about food and energy. That’s what they feel every day,” according to Sung Won Sohn, professor of finance and economics at Loyola Marymount University, who spoke to Reuters. “Many voters are at the lower leg of the K-shaped economy. They are suffering because of higher energy and food prices, and I assume that will have an impact on the election results, as a lot of people seem to think.”
The K-shaped economy concept describes a situation where one part of the economy grows while another shrinks, with the different parts essentially moving in opposite directions.
In further data on U.S. inflation, Reuters reported that the reading for the 12 months to September stood at 3.6%, significantly higher than the Fed’s 2% target. Core inflation, which excludes energy and food prices, was also higher than the Fed’s target for the 12 months to September, but at a much more moderate 2.4%.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
- Japan to Compensate Oil Importers for High Shipping Costs
- Pakistan Faces $1 Billion LNG Bill This Winter
- Super El Niño Could Ease Asia’s LNG Supply Concerns
