Diesel hits $6 a gallon for the first time, fueling inflation

The national average price of a gallon of diesel jumped over $6 for the first time ever, AAA said on Friday.

Why it matters: The fuel that runs the economy is getting more expensive by the day, costing businesses and consumers alike billions of dollars.

• While the $6 threshold is more psychological than anything else, it points to months of continued pain for drivers, shippers and shoppers.

Driving the news: At $6.0556 a gallon, diesel is about 14% more expensive than it was a month ago and over 60% more than a year ago.

• That is starting to show up in other prices, as has long been feared; inflation data out Thursday showed sharp spikes in transportation and warehousing costs, for example.

Stunning stat: Brown University estimates higher diesel prices have cost U.S. consumers more than $46 billion since the war began.

• About 20% of that is in Texas and California alone.

The intrigue: The White House's position is that fuel prices will come down after the midterms as the war with Iran winds down and oil supplies improve.

• But the Department of Energy sharply raised its 2027 diesel price forecast this week, acknowledging a painful higher-for-longer scenario.

The bottom line: With diesel at $6, inflation looks like it's here to stay for a while.