December Producer Price Index Rises 1.1%

Prices paid to U.S. producers rose by the most in almost a year, gaining 1.1% in December, the Labor Department said Thursday.

The increase in prices paid to factories, farmers and other producers followed a 0.8% rise in November.

Economists had forecast another 0.8% increase for December, Bloomberg reported. The core producer price index excluding food and energy rose 0.2%, in line with estimates.

Food prices rose 0.8% in December, while energy prices spiked 3.7%, led by higher oil prices.

For the full year the PPI rose 4%, compared with 4.3% in 2009.

An increase in the PPI could indicate strong demand for goods, which would mean more shipments for trucking companies. However, if inflation begins to accelerate too quickly, it could also hurt the economy.