Producer Prices Rise 0.2%; ‘Core’ Rate Up More Than Forecast

June 13, 2006 8:40 AM, EDT

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he producer price index rose 0.2% in May, the Labor Department reported Tuesday, and the so-called "core" rate excluding food and energy rose more than forecast.

he reading of wholesale prices paid to factories, farmers and other producers followed April’s 0.9% jump. Economists had forecast a 0.4% rise.

The core PPI rose 0.3%, the most in three months, following a 0.1% gain in April. That was higher than economists’ forecasts of a 0.2% increase in the core rate.

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.