Inflation at the wholesale level in the U.S. rose sharply in November, continuing a gradual upward trend that could translate into higher prices for consumers in the near future. The producer-price index jumped 0.4% in November, largely because of higher wholesale margins in the extremely volatile retail category. Economists surveyed by MarketWatch had predicted a 0.2% increase in PPI. Some modest inflationary pressure is building after several years of weak or declining prices. Wholesale costs have risen 1.3% in the period stretching from November 2015 to November 2016, the biggest 12-month gain in two years. A separate measure that strips out the volatile food, energy and trade-margin categories rose a lesser 0.2% in November. The core measure command more attention from Wall Street investors. Still, so-called core producer prices have climbed 1.8% in the past year, marking the largest advance since mid-2014. Prices of raw and partly finished goods show a similar upward trend on a 12-month basis. Both turned positive in November for the first time since 2014. The gradual rise in prices, as measured by several measures of inflation. has figured into plans by the Federal Reserve to raise interest rates later on Wednesday. The Fed believes the economy is strong enough to warrant the first rate hike in a year. Futures for the Dow Jones Industrial Average YMZ6, -0.12% DJIA, +0.58% and the S&P 500 index ESZ6, -0.16% SPX, +0.65% added modestly to early losses Wednesday morning following the report.

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