Producer Price Index Rises 0.6% in August

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he U.S. producer price index rose 0.6% in August, while prices excluding food and energy were unchanged, the Labor Department said Tuesday.

The August reading of prices paid to factories, farmers and other producers followed a 1% jump in July, Labor said.

Analysts were expecting the PPI to rise 0.7% and the so-called “core” rate excluding food and energy to rise 0.1%, 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 3.7% in August following a 4.4% rise in July. Gasoline prices surged 9.5% following a 10.9% jump in July.

utomobile prices fell 1.3% in August, the biggest rise since July 2004. Computer costs fell 0.4% after a 2.1% drop the previous month.