U.S. producer price index rises 0.4% month-on-month in November

The U.S. Labor Department said the U.S. producer price index, which affects consumer prices, rose 0.4% month-on-month in November.

That's above the Dow Jones expert forecast of 0.2%, and the year-over-year gain was 3%, the highest since February last year's 4.7%.

The core producer price index, which excludes energy and food, was 0.1% month-on-month, below the 0.2% forecast, and up 3.5% year-on-year.

The producer price index is an early look at consumer price trends, which economists note affects the Federal Reserve's preferred inflation gauge, including health care and financial services.

Although consumer and producer price indices rose slightly in November, some predict that they will not have a significant impact on the Fed's decision to cut its benchmark interest rate next week.