A rise in energy costs is expected to lead to an overall rise in U.S. consumer inflation, with September figures estimated at 0.6% on a monthly basis by economists polled by Reuters. Official CPI data for September is expected to be released later today.
U.S. gasoline prices rose 7.1% last month, with the latest daily national average price at $4.3413 per gallon, according to AAA. This is close to the average from a month ago, with a difference of $0.028 per gallon. Diesel prices, however, remain stubbornly high, above $6 per gallon, although they are below their all-time high of more than $6.50 per gallon.
Another Reuters poll suggests that more than two-thirds of Americans, or 78 percent, blame Trump’s policies for the rising cost of living. Among specific policies, survey respondents cited the war in Iran and tariffs on imports.
“People care about food and energy. That’s what they feel every day,” said Sung Won Sohn, a professor of finance and economics at Loyola Marymount University, who spoke to Reuters. “Many voters are at the bottom of the K-shaped economy. They are suffering from rising energy and food prices, and I suspect that will impact the election results, as many people seem to think.” »
The concept of a K-shaped economy describes a situation in which one part of the economy is growing while another is contracting, with the different parts essentially moving in opposite directions.
In other US inflation data, Reuters reported that the figure for the 12 months through September stood at 3.6%, significantly above the Fed’s 2% target. Core inflation, which excludes energy and food prices, was also above the Fed’s target for the 12 months through September, but at a much more moderate rate of 2.4%.
By Charles Kennedy for Oilprice.com
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