Producer Price Index Falls 1.4%, Labor Dept. Reports

he U.S. producer price index fell 1.4% in February, the largest decline since April 2003, as food and fuel prices fell, the Labor Department said Tuesday.

The February reading of prices paid to factories, farmers and other producers followed a 0.3% gain in January.

The so-called “core” PPI, excluding energy and food, increased 0.3% after rising 0.4%, Labor 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.

Energy prices declined 4.7% in February after no change in January.

rices of materials such as scrap steel and timber increased 0.1% after rising 0.3% in February.

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