Higher Energy Costs Intensify Price Pressures in Half of Fed Districts

The Federal Reserve’s Beige Book found stronger price pressures in six of 12 districts in recent weeks.

The survey covers economic conditions across the United States, based on feedback from contacts in the Fed’s regional districts.

Higher energy costs were filtering through local economies, while businesses also pointed to other commodities, tariffs and insurance costs.

Companies said higher costs were spreading through supply chains, including through fuel surcharges.

The findings came alongside US data showing monthly inflation in September reached its highest level in five months.

The Fed is weighing whether inflation needs more action, after raising interest rates in September for the first time since 2023.

Its next policy meeting is scheduled for October 27–28, and market expectations leaned toward holding rates steady in October before another increase in December.