Producer Price Index Falls in July

Prices paid to U.S. producers fell 0.9% in July, the Labor Department said Tuesday.

The increase in prices paid to factories, farmers and other producers followed a 1.8% gain in June.

The core producer price index excluding food and energy fell 0.1%, Labor said.

Economists had predicted the PPI would rise 0.3%, while the core rate was 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.