Producer prices in Iceland rose 5.9 percent year-on-year in July of 2019, easing from a 6.7 percent gain in the previous month. It was the lowest producer inflation since February, as power intensive industry cost fell further (-6.8 percent vs -5.5 percent in June) while prices went up at a softer pace for other manufacturing industries (12.0 percent vs 13.2 percent) and food production (4.6 percent vs 4.7 percent). On the other hand, marine products cost advanced faster (21.2 percent vs 21.1 percent). On a monthly basis, producer prices dropped 1.0 percent, after increasing 1.2 percent increase in the previous month. Producer Prices Change in Iceland averaged 5.47 percent from 2007 until 2019, reaching an all time high of 68.50 percent in November of 2008 and a record low of -12.40 percent in January of 2014.
Producer Prices Change in Iceland is expected to be 8.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Iceland to stand at 5.00 in 12 months time. In the long-term, the Iceland Producer Prices Change is projected to trend around 4.00 percent in 2020, according to our econometric models.