Data: AAA; Chart: Ben Geman/AxiosHeadline CPI rose 0.4% in August, its biggest monthly increase since May, with gasoline accounting for more than a third of the increase.The Fed typically looks through temporary supply shocks, but a sustained energy surge risks spilling into other prices — and energy price pressures have only escalated further in September.Zoom out: Central banking orthodoxy would suggest not responding to energy price shocks directly, but responding to the extent that swings in fuel prices are filtering through to broader prices.Unfortunately for anyone seeking lower borrowing costs, there is evidence that this is indeed happening, risking energy-driven inflation becoming more entrenched.Soaring diesel fuel prices are affecting the price of transportation of all sorts of goods, with the biggest effects on bulky or heavy items.Airline fares were up 2.7% in August alone and are up 23.4% over the last 12 months.Between the lines: If energy price relief were in progress, it would be easier to look through those price surges. No relief is in sight, however.Those figures are already backward-looking. The energy shock has since worsened this month, with oil prices around $100 a barrel and diesel topping $6 a gallon for the first time on record — all pointing to more inflation pressure still to come.
The rising energy cost dilemma
A sustained energy price surge risks spilling into other prices and driving inflation.














