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April 18, 2006 8:40 AM, EDT

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he producer price index rose 0.5% in March, the Labor Department said Tuesday.

he reading of wholesale prices paid to factories, farmers and other producers followed a 1.4% drop in February.

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

The overall gain exceeded economists’ forecasts of a 0.4% rise, while the core increase was below the 0.2% median forecast, 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.