On Friday, CNBC reported that the wholesale prices for companies increased 0.3 percent in November, a signal of higher inflation on the horizon. According to the report:
Wholesale prices rose more than expected in November as food prices surged, dampening hopes that inflation could be headed lower, the Labor Department reported Friday.
The producer price index, a measure of what companies get for their products in the pipeline, increased 0.3% for the month and 7.4% from a year ago, which was the slowest 12-month pace since May 2021. Economists surveyed by Dow Jones had been looking for a 0.2% gain.
Excluding food and energy, core PPI was up 0.4%, also against a 0.2% estimate. Core PPI was up 6.2% from a year ago, compared with 6.6% in October.
Stocks fell following the report after previously indicating a positive open on Wall Street. Treasury yields moved higher.
The inflation numbers show that the Fed is on track for another rate increase, meaning interest rates will likely skyrocket another 0.5% to quell inflation.
Reports from Fox Business and CNN also indicated that gas prices are set to increase in the future due to global uncertainty, meaning there is a rising trend on fuel as well.