Industrial producer prices in the Euro Area increased 0.8 percent month-over-month in October 2018, following an upwardly revised 0.6 percent rise in the previous month and compared to market expectations of a 0.5 percent gain. Energy prices climbed 2.7 percent, accelerating from a 1.8 percent advance in September; and capital goods costs went up 0.2 percent, after being unchanged in the previous period. Additional upward pressure came from both intermediate and durable consumer goods (0.1 percent vs flat reading in September) while non-durable consumer goods prices fell 0.1 percent, after showing no growth in the previous month. Year-on-year, producer prices jumped 4.9 percent in October, the most since November 2011. Producer Prices in the Euro Area averaged 79.86 Index Points from 1981 until 2018, reaching an all time high of 106.20 Index Points in October of 2018 and a record low of 49.10 Index Points in January of 1981.
Producer Prices in Euro Area is expected to be 105.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices in Euro Area to stand at 107.72 in 12 months time. In the long-term, the Euro Area Producer Prices is projected to trend around 112.00 Index Points in 2020, according to our econometric models.