U.S. diesel prices have surged 83% this year! Apollo's chief economist warns: cost pass-through may make core inflation more stubborn, and the Fed will find it hard to ignore.

Zhito Finance APP has learned that Apollo Global Management Chief Economist Torsten Slok warned that the inflation threat from U.S. diesel prices surging to record highs may be more severe than the Federal Reserve currently realizes. Unlike gasoline price increases, which are mainly reflected directly in energy spending, diesel costs are widely embedded in economic activities such as goods transportation, retail supply chains, and data center construction, and therefore may further pass through to core consumer price index (CPI). In an interview on Friday, Slok said: "When diesel prices rise, they actually enter categories in the CPI basket other than the energy component."