The latest spike in fuel prices is harder to stomach than the one earlier this year as businesses and consumers have less capacity to absorb the shock, while fresh price data show inflation is spilling over beyond energy.
While crude oil prices have somewhat moderated despite the Iran war re-escalating recently, refining constraints have kept gasoline and diesel costs high. Average diesel prices hit $6.30 a gallon Wednesday, up about 68% from before the Iran war, according to AAA. And because diesel is especially critical as an industrial fuel used in manufacturing, farming, and transportation, its price surge has been pervasive across sectors.