World Press Review
Based on data from Reuters and the U.S. Bureau of Labor Statistics, the Center for Economic Research and Reforms analyzed the acceleration of producer price inflation in the U.S., the growth of China's meat and dairy exports, as well as the fuel oil deficit and price dynamics in the global market.
World Press Review
**Producer Price Inflation in the US Reaches 4-Year High**
According to data from the US Bureau of Labor Statistics (BLS), in September 2026, the Producer Price Index (PPI) increased by 1.3 percent in one month, recording the highest growth rate since the beginning of 2022. This was mainly driven by rising energy prices, which consequently led to higher transportation and manufacturing costs.
Energy prices jumped by 10.8 percent, including gasoline up by 20.3 percent and diesel fuel by 21 percent. On an annual basis, diesel fuel rose by 115.2 percent. As a result, freight trucking rates climbed by 19 percent compared to September of last year, demonstrating the highest growth rate in the last four years.
In the first two stages of intermediate demand, food prices increased by 15.6 percent year-on-year, while wholesale food prices rose by 1.2 percent in a month. In the services sector, the monthly growth rate of prices accelerated from 0.2 percent in August to 0.8 percent in September.
Overall, producer prices for goods increased by 2.6 percent over the month. This represents the highest growth rate since this statistics began being tracked in December 2009. More than 80 percent of this increase was accounted for by rising energy prices. At the same time, trade margins in trade services rose by 1.4 percent, providing nearly half of the overall growth in service prices.
**China Increases Exports of Meat and Dairy Products**
As a result of China's policy to strengthen food security, meat and dairy production volumes expanded, exceeding domestic demand. The resulting surplus products are being directed toward exports.
According to Chinese customs data, poultry exports reached $2.6 billion in 2025, doubling compared to 2020. China became a net exporter of chicken meat for the first time. According to forecasts, dairy exports will reach $600 million in 2026, doubling over the past three years.
Price advantage is becoming one of the factors driving export growth. In particular, Chinese poultry products are offered to foreign buyers at a price $1,000 per ton cheaper than similar products from Brazil and Thailand. Chinese enterprises currently supply meat products to more than 20 countries.
The European Commission launched an anti-dumping investigation into duck meat imports from China and also imposed duties ranging from 41 to 67 percent on pea protein produced in China. Meanwhile, in 2025, China's foreign trade deficit in agricultural and food products remained at a high level above $100 billion.
**Fuel Oil Shortage in the Global Market Supports Price Growth**
According to Reuters, compared to February 2026, supplies of high-sulfur fuel oil (HSFO) through the Strait of Hormuz decreased by at least 800,000 tons per month.
According to Kpler data, from January 2025 to February 2026, the average monthly volume of fuel oil exports through the Strait of Hormuz amounted to 3.7 million tons. The additional reduction in supplies is linked to disruptions in the operation of Russian oil refineries, due to which monthly losses in fuel oil production are estimated at 1 million tons.
Under tight supply conditions, the premium added to the benchmark price of high-sulfur fuel oil with a viscosity of 380 centistokes (cSt) increased tenfold in October, reaching $50 per ton in October from $5.1 in February. Additionally, rising maritime transport costs and risks associated with shipping through the Strait of Hormuz are having an added impact on increasing supply costs.
Due to disruptions in crude oil supplies from Saudi Arabia, refineries in North Asia are increasing their use of fuel oil as an alternative feedstock. In November, high-sulfur fuel oil processing volume will exceed 1 million tons.
At the same time, demand for alternative types of marine fuel is growing.
According to the Maritime and Port Authority of Singapore, sales of liquefied natural gas for ship fueling (bunkering) reached 487.1 thousand tons in January–September 2026, up 21 percent year-on-year. Vitol is also expanding the geography of its ship bunkering activities. In particular, it is establishing the use of Pakistan's Gwadar port as an alternative to traditional supply routes in the Persian Gulf.