PPI Falls 1.3% in September; Core Rises 0.6%

October 17, 2006 9:10 AM, EDT

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he producer price index fell 1.3% in September, the Labor Department reported Tuesday, while the "core" PPI rate excluding food and energy rose 0.6%.

he reading of wholesale prices paid to factories, farmers and other producers follows a 0.1% increase in August.

The 0.6% increase in core prices, the biggest gain since January, follows a 0.4% decline in August, Bloomberg said.

Economists had forecast a 0.7% drop in the PPI and a 0.2% gain for the core rate, 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.

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