Bloomberg Surveillance · Friday, September 25, 2026
Michael Gapin discussed how diesel prices could impact core inflation, especially in the Midwest and Plains states where agriculture relies heavily on diesel. He suggested this could contribute to ongoing increases in transportation costs, affecting the affordability for average Americans.
“And this is, you know, inflation has come down as we thought, but it's come down more slowly. And we have built in second round effects on a lot of transportation costs because of the diesel story.”
“So we do think it's something maybe we won't see it like up front, but it'll be there in a way that I think continues to stretch the pocketbooks of the economy and the average American.”