Producer Price Index Jumps 0.9%, Led by Energy Costs

he producer price index rose 0.9% in April, led by a surge in gasoline prices, the Labor Department reported Tuesday.

he reading of wholesale prices paid to factories, farmers and other producers was the biggest in seven months and followed a 0.5% drop in March.

The “core” PPI, which excludes energy and food, rose 0.1% for a second straight month.

Energy prices gained 4% in April, and gasoline prices surged 12.3%, the most since October 2004.

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.