Diesel Falls 7.9% as Freight Costs Rise and Bitcoin Slides

U.S. diesel prices fell 7.9% in October, while truck freight prices rose 3.9%, according to the Bureau of Labor Statistics. Bitcoin traded at $68,097.83 on Nov. 13, down 4.5% over 24 hours and below $70,000.

The BLS reported that final-demand producer prices increased 0.3% in October on a seasonally adjusted basis. The increase followed a revised 1.4% rise in September. Prices for goods increased 0.5%, while final-demand energy prices declined 0.1%.

The producer-price measure excluding food, energy and trade services rose 0.5% for a second consecutive month. Its annual increase eased to 4.9% from 5%. Annual headline producer-price inflation rose to 6.5% from 6.3%.

Transportation and warehousing services prices increased 2% in October. Truck freight accounted for more than 80% of the 0.2% monthly increase in final-demand services prices, according to the BLS.

Unprocessed intermediate goods prices fell 3.1%. These prices cover goods sold to businesses for use in producing other goods and services.

The report followed consumer-price data showing a 0.4% monthly increase in headline prices and a third consecutive 0.3% increase excluding food and energy.

Before the consumer-price report was released, Federal Reserve Governor Christopher Waller favored a 25-basis-point interest-rate increase in December if economic conditions developed as expected. He said a 50-basis-point increase should be considered if core consumer-price inflation remained around 0.3% or higher.

The producer-price index measures prices received by domestic producers. The consumer-price index measures prices paid by consumers. The Federal Reserve’s preferred inflation measure is the personal consumption expenditures index.