Producer Price Index Rises 0.8%

Prices paid to U.S. producers rose 0.3% in January, the Labor Department said Wednesday.

The increase in prices paid to factories, farmers and other producers followed a 1.1% rise in December that had been the biggest jump in a year.

The core producer price index excluding food and energy rose 0.5%, the biggest since October 2008.

The overall PPI reading matched economists’ forecasts, while the core rate was projected to rise 0.2%, Bloomberg reported.

Food prices rose 0.3% in January, while energy prices gained 1.8%.

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.