SURGING FUEL PRICES COULD HIT U.S. INFLATION EXPECTATIONS

U.S. diesel prices have surged to nearly $6.50, roughly 18% above August’s average, while gasoline has climbed to $4.48.

Consumer surveys have yet to fully capture the latest spike, making Friday’s final Michigan sentiment survey an important test.

Business surveys are already showing hotter price pressures, potentially reinforcing the Fed’s increasingly hawkish outlook.