Producer Price Index Rises for First Time in Three Months

Prices paid to U.S. producers rose 0.5% in May, the first increase in three months, the Labor Department reported Friday.

The rise in the producer price index followed a 0.7% decline in April, which was the largest drop in three years. The so-called core PPI, which excludes food and energy, increased 0.1%, Labor said.

The rise in the PPI exceeded economists’ median forecast of a 0.1% rise, Bloomberg News reported. The core rate matched economists’ projections.

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, the economy could be hurt.