September Producer Prices Drop 0.4%

Prices paid to U.S. producers fell 0.4% in September, while the rate excluding food and energy rose, the Labor Department said Wednesday.

The so-called core producer price index, which excludes food and energy, rose 0.4%, Labor said.

The PPI decline was in contrast to the 0.2% increase forecast by economists, while the core price increase was double analysts’ expectations, Bloomberg reported.

Prices were up 8.7% from a year earlier, while core prices rose 4% in the past 12 months, Bloomberg said.

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.