Producer Price Index Gains in October; ‘Core’ Rate Drops

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he U.S. producer price index rose 0.7% in October, while prices excluding food and energy fell 0.3%, the Labor Department said Tuesday.

The October reading of prices paid to factories, farmers and other producers followed a 1.9% jump in September that had been the highest in 15 years.

he PPI increase was greater than the no change 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 rose 4.1%, down from a 7.1% gain in September that had been the highest in 15 years.

rices of materials such as scrap steel and timber rose 6.7% after rising 10.2% in September. Excluding food and energy, core raw material costs fell 1.2%.