Producer Price Index Shows Record Drop

Prices paid to U.S. producers fell by the most on record in October, falling 2.8%, the Labor Department said Tuesday.

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

Analysts had forecast the PPI to drop 1.9%, while core prices were projected to rise 0.1%, Bloomberg reported.

Prices were up 5.2% from a year earlier, while core prices rose 4.4% over 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.