Diesel prices top $6 as energy costs push inflation higher

Diesel prices exceeded $6 a gallon in parts of Virginia on Friday, while regular gasoline topped $4.12 a gallon in Richmond and statewide. Higher fuel costs are raising transportation expenses for goods including groceries.

The Consumer Price Index rose 0.1% in August and 3.4% over the past year. Core inflation, excluding food and fuel, increased 0.3%, driven partly by higher rents and lodging costs.

The figures increased expectations that the Federal Reserve could raise its overnight lending rate by a quarter percentage point after its meeting next week. Virginia sales and use tax collections nevertheless rose 4% in August, while overall state revenues increased 2.8%.

Read the full story at insurancenewsnet.com.