Producer Price Index Declines For Second Month

Prices paid to U.S. producers dipped for a second consecutive month, declining 0.2% in October, the Labor Department reported Nov. 21.

Last month’s producer price index reading followed a dip of 0.1% in September. The decline matched economists median forecast, Bloomberg News reported.

The so-called core PPI, which excludes food and energy, increased 0.2%. Economists had expected a 0.1% gain.

Weaker overseas markets such as Europe are limiting demand for commodities, including fuel, keeping a lid on prices within the production chain, 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, the economy could be hurt.