Oxford Economic Research Institute: The U.S. September PPI is expected to rise by 0.6%, and diesel prices are expected to surge over 70% year-on-year

The U.S. Producer Price Index (PPI) for September will be released at 20:30 Beijing time on October 15. Oxford Economics expects the September PPI to rise by 0.6% month-on-month, higher than the market expectation of 0.5% and August's 0.4%. In August, U.S. diesel prices increased by 24% month-on-month and 77% year-on-year. According to the American Automobile Association, the retail price of diesel reached a historic high of $6.528 per gallon on September 22.

As of Wednesday, the U.S. retail price of diesel remained at $6.30 per gallon, over 70% higher than the same period last year. Analysts say that diesel is an important input for road freight, rail transport, and agricultural production. Rising prices will first push up production and transportation costs for businesses, and then gradually transmit through fuel surcharges, transportation contracts, and retail pricing, with cost pass-through potentially lagging. The Trump administration has temporarily relaxed some restrictions on agricultural fuel use and stated that Russia will supply diesel to the global market. Industry insiders believe these measures are unlikely to resolve refining capacity and finished oil supply bottlenecks in the short term.