# Wholesale prices hit four-year high as Fed prepares rate rise

> Producer prices surged 6.5% annually in October, the biggest jump since November 2022, keeping the Federal Reserve on track for a December rate increase.
- Title: Wholesale prices hit four-year high as Fed prepares rate rise
- Summary: Producer prices surged 6.5% annually in October, the biggest jump since November 2022, keeping the Federal Reserve on track for a December rate increase.
- Keywords: producer price index, wholesale prices, inflation, federal reserve, interest rates, december meeting, CNBC
- Source: CNBC — https://cnbc.com/2026/11/13/ppi-inflation-report-october-2026.html
- Author: Jeff Cox
- Published: 2026-11-13T13:31:21+00:00
- Read time: 1 min
- Topics: producer price index, wholesale prices, inflation, federal reserve, interest rates, december meeting, business, finance
## Wholesale prices rise less than forecast
The producer price index rose zero point three percent in October, below the zero point four percent forecast. Core PPI, excluding food and energy, matched expectations at zero point three percent.
## Annual rate hits four-year high
On an annual basis, headline PPI accelerated to six point five percent, the highest rate since November two thousand twenty-two. This marks a zero point two percentage point increase from the previous month.
## Fed expected to raise rates in December
Markets are fully pricing in a quarter percentage point increase in the Federal Reserve's key overnight borrowing rate when the Fed meets December eight to nine. Slight odds exist for a half-point hike.
## Inflation spreading beyond energy and tariffs
Chicago Fed President Austan Goolsbee warned that inflation is becoming entrenched across categories not driven by oil prices or tariffs. He said progress has stalled and in some cases inflation is going the wrong way.

> If you look at how broad-based the inflation is, it's not just that we're above the target and have been for some time.
## Goods prices jump to two-year high
Goods prices increased zero point five percent in October. On an annual basis, the goods index jumped ten point two percent, the biggest twelve-month surge since October two thousand twenty-two.
## Inflation persists despite some improvement
Chris Zaccarelli, chief investment officer for Northlight Asset Management, said today's PPI data showing some improvement is unlikely to change the Fed's December approach because consumer price data was already outside their comfort zone.

> Today's PPI data, which shows some signs of improving, albeit still too-high, is unlikely to change the Fed's approach in December.
## Key takeaway

Wholesale prices rose to their highest annual rate in nearly four years in October, reinforcing expectations the Federal Reserve will raise interest rates in December.