Producer Price Index Rises 0.2% in July

Prices paid to U.S. producers rose 0.2% in July, the Labor Department said Wednesday.

The increase in the producer price index — which measures prices paid to factories, farmers and other producers — followed a 0.4% drop in June, which was the first decline in a year.

The core PPI, which excludes food and energy, rose 0.4%, the largest gain since January.

Economists had predicted a 0.1% increase in the PPI, 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.