US wholesale inflation picked up more than expected in August

US wholesale inflation picked up more than expected in August, government data showed Thursday, driven by higher energy costs in the month -particularly for diesel- as the US war with Iran continued. These figures are increasing pressure on major central banks, including the Federal Reserve, to raise interest rates again and combat rising inflation.

The Producer Price Index (PPI) was up 5.4 percent year-on-year last month, the Department of Labor said. This was a significant acceleration from the 4.8 percent rise in July.

On a month-on-month basis, PPI rose by 0.4 percent.

Diesel surged 24.1 percent

Energy costs jumped by 4.2 percent over the month, notably boosted by the cost of diesel fuel, which surged 24.1 percent, the report said.

Rising prices at the pump have squeezed US households and businesses since US-Israeli strikes targeting Iran in late February prompted Tehran to choke off the Strait of Hormuz in retaliation.

The waterway is a crucial route for global energy transit, sending costs up and piling pressure on voters weeks ahead of key US midterm elections.

The price of diesel, the fuel needed for road hauling and agriculture, has rocketed to a new record in the United States this week. It now stands at a national average of $5.98 per gallon, significantly up from the year-ago average of $3.71 per gallon, according to the AAA motorists' association.

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