Producer Price Index Rises 1.4% in January

Prices paid to U.S. producers rose 1.4% in January, the Labor Department said Tuesday.

The producer price index gain followed a 0.4% increase in December. The core PPI, which excludes food and energy, grew 0.3.

Economists had predicted a 0.8% increase in the PPI, while the core rate was expected to rise 0.1% after no change from November to December, 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.