Producer Price Index Rises More Than Forecast

Prices paid to U.S. producers rose 0.8% in November, the Labor Department said Tuesday.

The increase in prices paid to factories, farmers and other producers followed a 0.4% rise in October and was more than the 0.6% forecast by economists, Bloomberg reported.

The core producer price index excluding food and energy fell 0.3%, slightly higher than economists’ projections of a 0.2% gain, Bloomberg said.

Food prices rose 1%, while energy prices rose 2.1%, led by a 4.7% spike in gasoline. New car prices rose 1.7%, while light truck prices rose 0.3%.

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.