Producer Price Index Climbs 1.9% in September

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he U.S. producer price index rose 1.9% in September, while prices excluding food and energy climbed 0.3%, the Labor Department said Tuesday. It was the biggest monthly increase in 15 years.

The September reading of prices paid to factories, farmers and other producers followed a 0.6% jump in August, Labor said.

The PPI increase was greater than the 1.2% predicted by analysts, while the so-called “core” rate excluding food and energy was expected to rise 0.2%, 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.

Energy prices jumped 7.1%, the biggest since October 1990, following a 3.7% rise in August. Gasoline prices surged 12.5% in September.

utomobile prices rose 0.9% after falling 1.3% in August. Computer costs fell 2.6% after a 0.4% drop the previous month.