Producer Price Index Rises 1.8%

Prices paid to U.S. producers increased 0.1% in April, the Labor Department said Tuesday.

The increase in prices paid to factories, farmers and other producers followed a 0.7% gain in March.

The core producer price index, which excludes food and energy, rose 0.2%, Labor said.

Economists had predicted the PPI would rise 0.1%, while the core rate was also 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.