Diesel Prices Are Doing What $4 Gas Did in 2008. Inflation Warning Sign?

US diesel prices have posted their sharpest annual increase on record, reviving fears that inflation is far from under control. Bloomberg Intelligence senior commodity strategist Mike McGlone said the move echoes a previous economic turning point.

He pointed to 2008, when four-dollar gasoline marked the peak before prices collapsed. Diesel Prices and the Inflation Record The Bloomberg heating oil index is up 150% over the past year. That is the largest annual gain in the index’s history, which dates back to 1987.

McGlone framed the current diesel price as a direct parallel to the last major fuel shock.

“That $6.50 diesel price looks very similar to $4 a gallon for gasoline in 2008 which marked the peak.” The 2008 spike preceded a sharp drop in demand as consumers and businesses cut fuel use. McGlone suggested a similar reversal, or “demand destruction,” is now likely.