Diesel hits $6 a gallon for the first time, fueling inflation

The national average price of a gallon of diesel jumped over $6 for the first time ever, AAA said on Friday. Why it matters: The fuel that runs the economy is getting more expensive by the day, costing businesses and consumers alike billions of dollars. While the $6 threshold is more psychological than anything else, it points to months of continued pain for drivers, shippers and shoppers. Driving the news: At $6.0556 a gallon, diesel is about 14% more expensive than it was a month ago and over 60% more than a year ago. That is starting to show up in other prices, as has long been feared; inflation data out Thursday showed sharp spikes in transportation and warehousing costs, for example. Stunning stat: Brown University estimates higher diesel prices have cost U.S. consumers more than $46 billion since the war began. About 20% of that is in Texas and California alone. The intrigue: The White House's position is that fuel prices will come down after the midterms as the war with Iran winds down and oil supplies improve. But the Department of Energy sharply raised its 2027 diesel price forecast this week, acknowledging a painful higher-for-longer scenario. The bottom line: With diesel at $6, inflation looks like it's here to stay for a while.

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