Producer Prices Rise 1% in January

Prices paid to U.S. producers dipped 1% in January, the Labor Department said Tuesday.

The monthly gain for the producer price index followed a 0.3% drop in December that was larger than initially reported.

The gain more than doubled economists’ forecast of a 0.4% increase, Bloomberg News reported.

The so-called core PPI excluding food and energy rose 0.4%, the largest gain in almost a year.

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.