Producer Price Index Rise for First Time in Four Months

Prices paid to U.S. producers rose for the first time in four months in July, the Labor Department said Tuesday.

The 0.2% increase in prices paid to factories, farmers and other producers followed a 0.5% drop in June.

The core producer price index excluding food and energy rose 0.3%, Labor said.

The PPI increase matched economists’ forecasts, while the core rate was projected to rise 0.1%, 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.