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Diesel prices hit record high, raising supply costs for many products
ABC News - Breaking News, Latest News and Videos • • business
Key Points:
- Diesel prices in the U.S. reached a record high of $5.85 per gallon due to the Iran war disrupting global oil supplies, with gasoline also hitting a seasonal peak at $4.14 per gallon, according to AAA.
- The surge in diesel prices, up 55% since the conflict began, is increasing transportation costs for goods like groceries and furniture, potentially leading to higher retail prices as wholesalers and retailers pass on these expenses.
- Global oil prices rose to around $94 a barrel amid fears of escalating conflict, significantly above pre-war levels, contributing to inflation pressures in the U.S. economy.
- Inflation remains elevated at 3.4% annually as of July, above the Federal Reserve's 2% target, prompting speculation of a potential interest rate hike in the Fed's upcoming September meeting.
- Fed Chair Kevin Warsh emphasized the need to prioritize fighting inflation to protect working Americans from the adverse effects of prolonged high prices and economic uncertainty.
