Key facts
- Businesses cited rising diesel prices, fuel surcharges, and other commodity costs as drivers of price growth.
- Three Fed districts described price growth as robust, eight as moderate, and three noted it was intensifying.
- The average rate on a 30-year fixed-rate mortgage reached 7.5%, the highest in nearly three years.
The Federal Reserve's latest Beige Book report, compiled from surveys of businesses across its 12 districts and collected on or before October 5, indicated that inflation is intensifying in various parts of the US. Businesses cited rising diesel prices, fuel surcharges, other commodity costs, tariffs, and insurance as drivers of price growth. Three districts described price growth as robust, while eight noted it as moderate, with three specifically stating it was intensifying. The report also highlighted a persistent low-hire, low-fire labor market. Consumer prices rose 3.7% in the 12 months through September, largely attributed to higher gasoline costs from the Middle East war, AI-driven demand for toys and software, and tariffs. The average rate on a 30-year fixed-rate mortgage reached 7.5% last week, the highest in nearly three years.