A SHORTAGE of US truck drivers, new regulations and solid demand are driving up long-haul rates that are now combining to accelerate inflation, says a Bloomberg commentary
A SHORTAGE of US truck drivers, new regulations and solid demand are driving up long-haul rates that are now combining to accelerate inflation, says a Bloomberg commentary. Producer-price figures from the US Labour Department showed that inflation continued to build in the sector last month, with general long-distance freight trucking costs advancing 9.4 per cent in June from a year earlier.
'That was the largest year-on-year increase in nearly a decade. The broader producer-price index was up 3.4 per cent, the most since November 2011,' said the commentary.
Producer-price figures from the US Labour Department showed that inflation continued to build in the sector last month, with general long-distance freight trucking costs advancing 9.4 per cent in June from a year earlier.
That was the largest year-on-year increase in nearly a decade. The broader producer-price index was up 3.4 per cent, the most since November 2011.
'Demand is exceeding capacity in most modes of transportation by a significant amount,' said Donald Broughton, managing partner of Broughton Capital, in the Cass Freight Index Report.
'In turn, pricing power has erupted in those modes to levels that continue to spark overall inflationary concerns in the broader economy,' it said.
