Marketplace Producers feel the pinch
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Aug 14, 2025 Elizabeth Troval, a correspondent for Marketplace, dives into the intricacies of the U.S. oil refining industry, highlighting significant regional disparities. She discusses California's challenges compared to the more favorable conditions in the Midwest and Gulf Coast, driven by increasing demand in Latin America. The conversation also touches on rising wholesale prices and their potential impact on consumers, while exploring the ongoing chaos in the job market influenced by automation and hiring practices.
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Wholesale Prices Outpacing Consumer Prices
- The Producer Price Index rose sharply while CPI stayed steady, showing wholesale costs are climbing faster than consumer prices.
- Economists see pockets of tariff-driven and service-related cost pressure that may feed into consumer prices over time.
Retailers Delaying Price Pass-Through
- Many firms hesitate to raise retail prices because competitive pressure and hopes tariffs are temporary keep margins tight.
- Analysts warn that persistent tariffs make a slower but longer-lasting consumer price increase more likely through fall and into next year.
Vegetable Prices Drive Wholesale Spike
- A large portion of wholesale inflation came from fresh and dry vegetables, which spiked nearly 39%.
- Causes may include climate effects, labor shortages, and tariffs reducing imports and tightening domestic supply.
