Fuel prices drive largest monthly rise in AIER price index
Rising gas costs pushed the AIER Everyday Price Index up by its biggest monthly amount since May, while shipping costs climbed for at least one grocer.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
This story is no longer being updated. It reflects reporting up to .
What happened
Surging fuel prices pushed AIER's Everyday Price Index to its largest monthly gain since May. One grocery chain now pays more to ship lettuce than the lettuce itself costs, as higher gas prices spread through the economy. The rise comes with no fiscal policy offset this time, unlike earlier in the year.
Why it matters
The increase strengthens the case for Federal Reserve tightening. Higher gas prices are beginning to bite across the economy without an offset from fiscal policy.
Timeline
- Oct 15, 7:25 AM ET: AIER's Everyday Price Index recorded its largest monthly gain since May, driven by surging fuel prices.
- Oct 16, 12:39 PM ET: A grocery chain reported that its cost to ship lettuce now exceeds the price of the lettuce itself.
Coverage
- For one grocery chain, the cost to ship lettuce now tops the lettuce itself, showing how high fuel prices are sinking their teeth across the economy (fortune.com)
- Higher Fuel Costs Spike AIER’s Everyday Price Index (thedailyeconomy.org)
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