Producer Price Index Rises in July

Prices paid to U.S. producers rose 0.6% in July, the Labor Department said Tuesday.

The increase in the producer price index followed a 0.2% drop in June, the index’s first decline in five months. The so-called core rate excluding food and energy rose 0.1% in July, the smallest gain in three months, Labor said.

The increase in the overall PPI came in above economists’ forecasts of a 0.2% increase, Bloomberg reported. The rise in core prices was lower than the expected 0.2% increase, Bloomberg said.

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.