AI Summary
5 min readThe producer price index rose 0.5% month-over-month in March, with wholesale gas prices up 14% and diesel up more than 40%. That diesel number matters because it powers the trucks that move goods across the country. Marketplace’s Justin Ho reported that companies are already feeling the squeeze. Catherine Reynolds, who handles imports for Palmetto Tile Distributors in South Carolina, said she’s been getting emails about fuel surcharges adding 15% to 25% to shipping bills. Zach Rogers, a professor at Colorado State University, noted that during the last energy price spike after Russia invaded Ukraine, companies still had excess inventory from the pandemic to lean on. This time, inventories are lean, so even expensive transportation can’t be avoided. Some businesses are trying to work around it. Ken Giddens, CEO of Rothman’s, a men’s clothing store in New York, said he rented a truck and drove to the warehouse in New Jersey to pick up 22 boxes himself, consolidating shipments to save money. But Reynolds said she’ll have to pass at least some of the costs on to customers.
Demand destruction and the Fed’s dilemma
Continue reading the full summary in the app — free to try.
Read Full Summary →Free • No credit card required
Never miss an episode of Marketplace
Get every new episode summarized in your inbox — free, ~5 minutes to read.
No spam. Unsubscribe anytime.
What you'll learn
- 1 (01:41) **Wholesale Inflation & Diesel Shock** - The March Producer Price Index shows headline wholesale inflation rose 0.5%, driven by a 14% spike in gas prices and a 40%+ jump in diesel, signaling cost pressures for the entire transport sector.
- 2 (02:17) **Businesses Squeezed Between Tariffs and Fuel Costs** - Companies are caught between paying higher fuel surcharges and the cost of stockpiling inventory to avoid constant re-shipment, with tariffs on imported goods adding another layer of expense.
- 3 (05:07) **IEA Warns of Demand Destruction & Stagflation Risk** - The International Energy Agency flags that high oil prices are beginning to destroy demand, which could lead to a significant economic slowdown and create a stagflation dilemma for the Federal Reserve.
- 4 (10:56) **Vietnam’s Workforce Golden Age** - The episode’s main feature begins with a dispatch from Ho Chi Minh City, where the host and ADP’s Neela Richardson explore Vietnam’s demographic sweet spot: two working-age adults for every dependent.
- 5 (11:20) **The Partially Air-Conditioned Factory** - The story centers on Henry Pham, a garment factory owner, whose plan to air condition his entire factory was derailed by a U.S. tariff policy change on shipments under $800.
- 6 (14:08) **The Bin Thai Market & Shifting Labor Dynamics** - A visit to the massive Bin Thai market reveals the flip side of Vietnam’s growth: older generation vendors struggle while their children move to higher-paying, easier office jobs.
- 7 (19:52) **Market Numbers & Vietnam Stock Ties** - The day’s market recap highlights Wall Street’s rebound and notes Vietnam’s critical role as the top apparel supplier to the U.S., with major companies like Nike and Crocs deeply exposed to the country.
+ Full timestamped outline available in the app
Guests on this episode
Show Notes
As the U.S. population ages, our economy will rely more on nations with younger workforces. Nations like Vietnam, where there are two working-age adults for every dependent. As part of our ongoing Age of Work series, host Kai Ryssdal and ADP chief economist Nela Richardson visit a garment factory and outdoor vendor market in Ho Chi Minh City to learn more about Vietnam’s economy. But first: Companies contend with higher transportation costs and the Fed faces oil industry demand destruction.
Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.
Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.
More from this podcast
Marketplace →