Armed with consumer and wholesale inflation reports, Wall Street economists predict the Federal Reserve’s favorite price gauge will show just a mild increase in November and justify an interest-rate cut.

Inflation in November rose modestly, with housing costs continuing to be a major factor in price increases. However, the Fed is expected to proceed with an interest rate cut next week.

Producer inflation remained too high in November, but there were signs of progress below the surface. An interest-rate cut by the Federal Reserve at its Dec. 17-18 meeting remains all but assured. The producer price index jumped by 0.