Diesel price surge drives up U.S. transport and food costs

U.S. diesel price surges are driving up transportation and agricultural costs, intensifying producer inflation and threatening consumer prices. Data released Thursday by the Labor Department showed wholesale inflation rose more than expected in September, signaling further consumer price increases ahead. Trucking costs jumped 19% year-over-year in September, the largest gain in over four years, as diesel prices more than doubled. Agricultural input costs rose 15.6%, with feed prices surging over 25%, prompting economists to predict a food inflation rebound by late 2026. Manufacturing materials are also rising at double-digit annual rates, and toy prices saw their largest monthly increase on record, threatening to make the upcoming holiday season more expensive.