The rise comes as the wholesale cost of U.S. goods and services retreated during the month of September. The producer price index did rise 0.2% according to the Labor Department, which was in line with expectations based on a poll of economists.

“This latest inflation data corroborates our view that the Fed is likely to move ahead with another rate hike in December, bringing this year’s total to four,” economists at Oxford Economics wrote.

U.S.-China Trade Deal Demands

Treasury Secretary Steve Mnuchin issued a warning to China, saying the world’s second largest economy better not weaken its currency as both the U.S. and China attempt to ameliorate their trade disputes. Mnuchin apprently told the Financial Times that the Treasury Department will keep China’s currency market under close watch, which could be part of a trade deal as discussions between the two economic superpowers continue.

“As we look at trade issues there is no question that we want to make sure China is not doing competitive devaluations,” said Mnuchin. “The renminbi has depreciated significantly during the year. We are going to absolutely want to make sure that as part of any trade understanding we come to that currency has to be part of that.”

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