Higher feul prices increase costs which decreases supply. Expect higher prices for transport-intensive goods:
These should be good times for railroads and trucking companies. After all, an improving economy means that more goods and commodities need to be delivered to the nation’s ports and department stores.
But rising fuel prices have taken a toll on their business.
With diesel prices near their highest levels since 2008, the impact has started to appear in the first-quarter results of companies like Union Pacific railroad and the Arkansas Best Corporation, which has a trucking subsidiary. Some shippers said they expected to raise fuel surcharges.
The timing, some economists say, could not be worse. Consumers are already paying steeper prices at the gas pump and may see prices climb in stores if diesel prices remain high. American manufacturers, meanwhile, are struggling to get back on their feet.
via www.nytimes.com
Me? I'm a locavore so I only pay high prices (and time costs) because I buy local.
