Producer Price Index Drops 0.3%

Prices paid to U.S. producers decreased 0.3% in May, the Labor Department said Wednesday.

The decline in prices paid to factories, farmers and other producers followed a 0.1% gain in April, and was the third drop in the past four months.

The core producer price index, which excludes food and energy, rose 0.2%, Labor said.

Economists had predicted the PPI would fall 0.5%, while the core rate was also expected 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.