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May 10, 2002 10:30 AM, EDT

The Labor Department's index of prices paid to U.S. producers slipped 0.2% in April, after a 1% increase in March, suggesting that inflation continues to pose no threat to the economy.

A slip in PPI is not necessarily good news for trucking though, because it could indicate weaker demand for goods, and fewer shipments for truckers to haul.

On the upside, the absence of inflationary pressure makes it easier for the Federal Reserve to delay raising interest rates. Businesses and consumers are currently enjoy 40-year lows in rates, which could induce more spending and increase the demand for trucking services.

A sharp drop in the cost of food more than made up for higher energy costs, the report said.

Taking out the volatile costs of food and energy, the so-called “core” PPI increased 0.1% in April, exactly the same increase as a month earlier.

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