Producer Price Index Rises 0.6%; ‘Core’ Increase is 0.3%

he Labor Department said Tuesday its producer price index rose 0.6% in April, while prices excluding food and energy rose 0.3%.

The level exceeded analysts’ forecasts of a 0.4% gain, while the so-called “core” prices excluding food and energy were projected 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.

Labor said energy prices climbed 2.1% in April, led by a 2.6% gasoline price rise and a 6.6% jump in natural gas prices.

rices also increased for truck trailers and industrial material handling equipment, Bloomberg reported.

Capital equipment prices rose 0.2% in April following a 0.3% rise the previous month, Labor said. Automobile prices rose 0.5% following a decrease of 0.2%.

Food prices rose 0.1% following a 0.3% rise in March, Labor said.