Producer Price Index Rises 1.6%

Prices paid to U.S. producers rose 1.6% in February, the Labor Department said Wednesday.

The increase in prices paid to factories, farmers and other producers followed a 0.8% rise in January and was the biggest jump since June 2009.

The core producer price index excluding food and energy rose 0.2%.

The overall PPI reading was more than double economists’ forecasts of a 0.7% gain, while the core rate matched projections, Bloomberg reported.

Food prices rose 3.9% in February, the most since November 1974, while energy prices gained 3.3%.

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.