Producer Price Index Rises for Second Straight Month

Prices paid to U.S. producers rose for the second consecutive month in August, the Labor Department said Thursday.

The 0.4% increase in prices paid to factories, farmers and other producers followed a 0.2% gain in July. It was the highest rise in five months.

The core producer price index excluding food and energy rose 0.1%, Labor said.

The PPI increase exceed economists’ forecasts of a 0.3% increase, while the core rate matched projections, 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.