Producer Price Index Falls in March

Prices paid to U.S. producers fell 0.6% in March, led by a drop in energy costs, the Labor Department reported Thursday.

The decrease in the producer price index followed a 0.7% gain in February. The so-called core PPI, which excludes food and energy, increased 0.2%, Labor said.

The decline in the PPI exceeded economists’ median forecast of a 0.2% drop, Bloomberg News reported. The core rate matched economists’ projections.

The decrease was led by a 3.4% drop in energy costs, the largest since February 2010, Bloomberg said.

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, the economy could be hurt.