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Original headline: Retail price impacts from Iran war uneven , add up before midterms – NBC Chicago
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- Retail price impacts from the Iran war are uneven but add up for US households before midterms
More than seven months into the U.S. war with Iran, higher fuel prices are making driving and flying more expensive and pushing up the cost of some goods, though retailers have not raised prices across the board. Moody's Analytics chief economist Mark Zandi estimates the war has cost the average U.S. household almost $2,000, including $1,100 in higher energy prices, $540 in higher interest rates and $360 in military costs. The national average gasoline price was $4.33 a gallon, 45% above its prewar level, while diesel rose 68% to $6.33, according to AAA. Airfares were about 22% higher than a year earlier, and USDA now expects grocery prices to rise 2.4% this year, up from an initial forecast of 1.7%. Many companies have absorbed part of their higher costs, but a sharp rise in wholesale prices suggests some may pass on more if fuel prices stay high.
- Retail price impacts from the Iran war are uneven but add up for US households before midterms
More than seven months into the U.S. war with Iran, sharply higher fuel prices are making driving, flying and some goods more expensive, though price rises have not been uniform across stores. Regular gasoline averages $4.33 a gallon nationally, 45% above its prewar level, while diesel is up 68% at $6.33, and airfares in September were about 22% higher than a year earlier. Many companies have absorbed part of their higher costs, and the USDA now expects grocery prices to rise 2.4% this year, a comparatively modest increase. Moody's Analytics chief economist Mark Zandi estimated the war has cost the average U.S. household almost $2,000, including energy costs growing by $50 a week, and prices could rise further if fuel stays elevated.
- Retail price impacts from the Iran war are uneven but add up for US households before midterms
More than seven months into the U.S. war with Iran, higher fuel prices are raising the cost of driving, flying and some goods, though retailers have not broadly raised prices because many companies are absorbing part of their costs. AAA reported the national average gasoline price at $4.33 a gallon, 45% above its prewar level of $2.98, and diesel at $6.33, up 68%. Airfares were about 22% higher in September than a year earlier, and USDA now expects grocery prices to rise 2.4% this year, up from an initial estimate of 1.7%. Moody's Analytics chief economist Mark Zandi estimated the war has cost the average U.S. household nearly $2,000, including $1,100 in higher energy prices, $540 in higher interest rates and $360 in military costs. A September jump in wholesale prices suggests some businesses may eventually charge more if fuel prices stay elevated.
- Retail price impacts from the Iran war are uneven but add up for US households before midterms
More than seven months into the US war with Iran, higher fuel costs are making driving and flying more expensive and adding to some goods prices, though store prices have not risen across the board as many companies absorb part of their costs. Gasoline averaged $4.33 a gallon nationally on Friday, 45% above its prewar $2.98, and diesel rose 68% to $6.33, with shipping through the Strait of Hormuz still constrained. Moody's Analytics' Mark Zandi estimates the war has cost the average US household almost $2,000, including $1,100 in higher energy prices. Airfares were about 22% higher in September than a year earlier as airlines raised fares and trimmed schedules, and USDA now expects grocery prices to rise 2.4% this year, up from an initial 1.7% forecast. Experts warn fresh produce could see quick price increases, though retailers may be absorbing some costs to avoid alienating customers.
- Gas price calculator shows how far your money goes
A new calculator from the Get the Facts Data Team shows how many gallons a given amount of money buys at the pump, based on the EIA's monthly national average price for regular gasoline. Regular gasoline averaged $4.36 in September, and the gasoline index was up 34.2% year over year. The BLS reported that gasoline rose 9.1% in September, accounting for over half of the month's overall increase, and overall inflation reached 3.7% year over year as the ongoing U.S. war with Iran keeps oil prices elevated.
- Iran conflict blamed for US energy shock and pressure on gas and grocery costs
The US Treasury cited Treasury Secretary Scott Bessent's view that the current price surge is an energy shock tied to the Iran conflict and that prices will fall after the conflict ends. The Bureau of Labor Statistics reported consumer prices rose 0.6% in September and 3.7% over 12 months, with energy up 20.4% and gasoline up 34.2% from a year earlier, while grocery prices fell 0.1% for the month. Core CPI rose 2.6% over the year, up from 2.4% in August, and rent rose 2.8%, so the article notes the data do not support claims that core inflation or rents are falling. Brent crude settled at $109.86 a barrel on October 16, and freight costs for one planned US-to-Japan tanker voyage equaled $40.50 per barrel. Agricultural commodity prices rose 13% in the third quarter, and the International Fund for Agricultural Development warned that disrupted fertilizer and transport could push food prices higher.
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