Producer Prices Jump 1.4% in May

Prices paid to U.S. producers jumped 1.4% in May, led by food and fuel costs, the Labor Department said Tuesday.

The core producer price index, which excludes food and energy, rose 0.2%, Labor said.

Economists had forecast a 1% increase in the overall rate and a 0.2% core gain, Bloomberg reported.

Food prices rose 0.8%, while gasoline jumped 9.3%, the biggest gain since November.

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.