Producer Prices See Biggest Decline Since July

Prices paid to U.S. producers fell 0.6% in February, the Labor Department said Wednesday.

The decline in the producer price index — which measures prices paid to factories, farmers and other producers — was the biggest since July and followed a 1.4% rise in January.

The core PPI, which excludes food and energy, rose 0.1%

Economists had predicted a 0.2% decline in the PPI, while the core rate’s increase matched forecasts, 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.