July 17, 2007 11:00 AM, EDT

Producer Price Index Dips in June

Prices paid to U.S. producers fell for the first time in five months in June, the Labor Department said Tuesday.

The producer price index dipped 0.2% following May’s 0.9% increase. The so-called core rate excluding food and energy rose 0.1%, Labor said.

The PPI decline and was in contrast to economists’ forecasts a 0.2% increase, 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.