Producer Price Rate Increase Slows

Prices paid to U.S. producers rose 0.2% in December, the Labor Department said Tuesday.

The producer price index gain followed a 1.8% increase in November. The core PPI, which excludes food and energy, was unchanged.

Economists had predicted no change in the PPI, while the core rate was 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.