ECONOMICS REPORT - High Fuel Prices Fail to Spread Inflation

ECONOMICS REPORT - High Fuel Prices Fail to Spread Inflation, at Least Not Yet
By Mario Ritter

Broadcast: Friday, September 23, 2005

I'm Bob Doughty¹ with the VOA Special English Economics Report.

 
 
While oil prices have climbed sharply, other costs have not followed. Inflation still appears to be under control.

Last week, the Bureau of Labor² Statistics reported that inflation in the United States rose by one-half of one percent in August. Energy costs, however, rose by five percent in the same month. But some prices have dropped. Clothing prices, for example, have fallen over the last year. Yet fuel prices can affect the economy in different ways.

The Energy Department says fuel prices reached their highest level during the week of September fifth. Americans paid an average of three dollars and seven cents a gallon, or almost four liters. That is not costly³ at all for drivers in many European countries and Japan. But Americans have never seen such prices for gasoline.

Oil prices were already high before Hurricane Katrina. Then, on August twenty-ninth, the storm hit states responsible for almost half of the nation's oil processing. Several oil refining centers in Louisiana and Mississippi remain closed.

 
 
And now Hurricane Rita threatens Texas, the biggest oil refining state.

Diesel⁴ prices, too, have reached new highs. That means higher fuel costs for trucks, trains and farm equipment. When oil prices rise, farmers also have to pay more for chemicals made with petroleum⁵ products.

High fuel prices also hit the air travel industry. Last week, two major airlines, Delta⁶ and Northwest, sought protection from their creditors⁷ on the same day. Both companies said increased fuel costs played a part in their decisions to seek protection in bankruptcy⁸ court.

In the past, airlines would simply charge more for travel when fuel prices rose. But today, airlines with different business plans like Southwest and JetBlue keep their prices low. That makes it difficult for other airlines to raise their prices.

The United States central bank has its own ways to fight inflation. Since June of last year, the Federal Reserve has raised interest rates. That raises the cost to borrow money. This week, the Federal Open Market Committee made its eleventh increase, to the highest level in four years.

The committee said strong growth in productivity has helped contain inflation. And it said the economic effects of Hurricane Katrina should be temporary. But the policy makers⁹ also said that "higher energy and other costs" could add to inflation pressures.

This VOA Special English Economics Report was written by Mario Ritter. I'm Bob Doughty.

1 doughty   

adj.勇猛的，坚强的

参考例句：

• Most of successful men have the characteristics of contumacy and doughty.绝大多数成功人士都有共同的特质：脾气倔强，性格刚强。
• The doughty old man battled his illness with fierce determination.坚强的老人用巨大毅力与疾病作斗争。

2 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

3 costly   

adj.昂贵的，价值高的，豪华的

参考例句：

• It must be very costly to keep up a house like this.维修这么一幢房子一定很昂贵。
• This dictionary is very useful,only it is a bit costly.这本词典很有用，左不过贵了些。

4 diesel   

n.柴油发动机，内燃机

参考例句：

• We experimented with diesel engines to drive the pumps.我们试着用柴油机来带动水泵。
• My tractor operates on diesel oil.我的那台拖拉机用柴油开动。

5 petroleum   

n.原油，石油

参考例句：

• The Government of Iran advanced the price of petroleum last week.上星期伊朗政府提高了石油价格。
• The purpose of oil refinery is to refine crude petroleum.炼油厂的主要工作是提炼原油。

6 delta   

n.（流的）角洲

参考例句：

• He has been to the delta of the Nile.他曾去过尼罗河三角洲。
• The Nile divides at its mouth and forms a delta.尼罗河在河口分岔，形成了一个三角洲。

7 creditors   

n.债权人，债主( creditor的名词复数 )

参考例句：

• They agreed to repay their creditors over a period of three years. 他们同意3年内向债主还清欠款。 来自《简明英汉词典》
• Creditors could obtain a writ for the arrest of their debtors. 债权人可以获得逮捕债务人的令状。 来自《简明英汉词典》

8 bankruptcy   

n.破产；无偿付能力

参考例句：

• You will have to pull in if you want to escape bankruptcy.如果你想避免破产，就必须节省开支。
• His firm is just on thin ice of bankruptcy.他的商号正面临破产的危险。

9 makers   

n.制造者，制造商（maker的复数形式）

参考例句：

• The makers of the product assured us that there had been no sacrifice of quality. 这一产品的制造商向我们保证说他们没有牺牲质量。
• The makers are about to launch out a new product. 制造商们马上要生产一种新产品。 来自《简明英汉词典》