It’s now much more likely that the Fed will raise interest rates next week.

With factors unfavorable to inflation mounting, the Fed is likely to raise interest rates next week, and judging from Thursday’s market prices, a rate hike could occur before the end of the year.

Traders pushed the chance of a rate hike to 70% in morning trading after reports showed a rise in wholesale prices in August and a fortuitous rise in U.S. oil prices exceeded $100 a barrel, according to CME Group’s FedWatch index.

It also pushed the chance of another interest rate hike in December to nearly 60%, as inflation trends remain robust and the likelihood of a central bank reaction increases.

“Inflation pressures are increasing as the conflict with Iran drags on longer than most expected, and investors are looking for a catalyst strong enough to change the inflation narrative,” said Jeffrey Roach, chief economist at LPL Financial. “At this rate, there is a high possibility that interest rates will be raised next week.”

The producer price index, which measures wholesale and pipeline cost pressures, rose 0.4% in August. This was in line with expectations, but followed an upwardly revised 0.1% rise in July, pushing the annual PPI level to 5.4%, slightly above expectations.

At the same time, escalating hostilities in the Middle East spooked commodity traders, sending U.S. oil prices up 4% to just above the $100 barrier.

Finally, the European Central Bank announced a quarter-point interest rate hike and raised its inflation outlook on concerns that the Iran war would have a more severe impact on the economy and cause long-term damage to consumer prices.

“Crude oil and refined products have continued to rise since data collection in August, adding further pressure,” said David Russell, global head of market strategy at TradeStation. “Oil prices continue to rise, combined with low unemployment claims, making it difficult for the Fed not to raise rates next week.”

Central bank policymakers will get their final look at inflation statistics on Friday when the Bureau of Labor Statistics releases its consumer price index.

The Dow Jones consensus is for the annual headline index to be 3.4%, while the core, which excludes food and energy, is expected to be 2.4%.

But the Fed is focusing on the Commerce Department’s personal consumption expenditures price index, which had a core index of 3.3% and a headline index of 3.7% in July. Federal Reserve Chairman Kevin Warsh recently reiterated that the PCE price index is the Fed’s official measure of inflation.

Stephen Juneau, senior U.S. economist at Bank of America, estimated that given the August PPI reading, core PCE was running at a monthly rate of 0.26%, rounded up to 0.3%.

“There could be a big swing after tomorrow’s CPI, but if we’re right, the FOMC should give the green light to raise rates next week,” Juneau said in a note.

BofA has the most hawkish Fed outlook on Wall Street, predicting three rate hikes at its upcoming meetings.

Although this is out of consensus with current futures pricing, recent developments suggest the Fed is being more aggressive when it comes to combating inflation.

Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said any weakness in the CPI could just be a sign that companies are struggling to pass on higher prices to consumers.

“People who only look at consumer prices for inflation information and interest rate predictions are not looking at the whole picture. Today’s PPI is evidence that there is still an inflation problem across the supply chain,” Boockvar said.