Scott Horsley

Last month, three members of the Fed's rate-setting committee hinted their next move could just as easily be a rate increase.

Scott Horsley, NPR News, Washington.

Good morning.

We've all seen the impact of the gas pump.

AAA says the average price of regular gas today is $4.50 a gallon.

That's up more than a buck and a half since the war began.

And that's expected to be a significant driver of inflation in April, just as it was in March.

Forecasters think the annual inflation rate last month climbed to 3.7, maybe 3.8 percent.

If so, that would be the highest inflation we've seen in at least two and a half years.

So what kind of ripple effects are those high energy prices having?

One of the most obvious side effects so far is the jump in the cost of airline tickets and baggage fees.

Airlines are having to pay a lot more for jet fuel, and they are beginning to pass that cost on to customers.

That's forcing some business travelers to rethink their travel plans.

It could also cut into some vacation travel, perhaps not right away, but as people make plans for later in the year.

My colleague Stephen Basaja spoke to a travel advisor who says reservations for fall travel are down.

And, you know, some people are opting to just stay closer to home.

Ultimately, the high cost of diesel fuel could affect the price of everything that gets delivered by truck or train.

But Josh Hurt, who's a senior economist at Vanguard, says that'll depend on how long this wartime price spike lasts.

Right now, the cost of diesel fuel is up nearly $2 a gallon since the war began.

There's only so long businesses can absorb those higher transportation costs before they start to show up in the price of other goods.