Producer Price Index Drops 0.5%

Prices paid to U.S. producers decreased 0.5% in June, the Labor Department said Thursday.

The decline in prices paid to factories, farmers and other producers followed a 0.3% gain in May, and was the fourth drop in the past five months.

The core producer price index, which excludes food and energy, rose 0.1%, Labor said.

Economists had predicted the PPI would fall 0.1%, while the core rate matched its median estimate, Bloomberg reported.

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.