Producer Price Index Rises 1.8%

Prices paid to U.S. producers jumped 1.8% in June, led by higher fuel costs, the Labor Department said Tuesday.

The increase in prices paid to factories, farmers and other producers followed a 0.2% gain in May, and was led by a 6.6% climb in energy prices.

The core producer price index, which excludes food and energy, rose 0.5%, Labor said. Food prices rose 1.1%, led by a 22% jump in vegetable prices.

Economists had predicted the PPI would rise 0.9%, while the core rate was expected 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.