Producer Prices Decline in October

Prices paid to U.S. producers decreased 0.3% in October, the largest decline in four months, the Labor Department said Tuesday.

The decrease in the producer price index — which measures prices paid to factories, farmers and other producers — followed a 0.8% gain in September.

The core PPI, which excludes food and energy, was unchanged. It was the first time since November 2010 that the reading did not increase.

Economists had predicted a 0.1% decrease in the PPI, 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.