November Sees Surging Wholesale Inflation Amid Rising Food Costs

Wholesale inflation in the US rose more than expected in November, driven by a 3.1% increase in food prices, according to the Labor Department's producer price index. This uptick comes despite a general decline in inflation from its peak levels and precedes the Federal Reserve's anticipated interest rate cut next week. The Fed has been reducing rates following a series of hikes aimed at curbing inflation, which remains above its 2% target. The report suggests ongoing price pressures, although components affecting the Fed's preferred inflation measure, the PCE index, were weak.