Producer prices in Kosovo increased 1.7 percent year-on-year in the second quarter of 2018, from a 0.2 percent gain in the previous period. It was the highest producer inflation since the third quarter of 2017, as prices rose the most for manufacture of metals (26.1%); manufacture of electrical equipment (11.8%); manufacture of wood & of products of wood & cork, articles of straw & plaiting materials (6.8%); manufacturing of machinery & equipment (3.1%); manufacture of chemical products (2.8%); manufacture of fabricated metal products, except machinery & equipment (2%) and rubber & plastic products (1.8%). On the other hand, cost fell for manufacture of beverages (-1.7%); supply of electricity, gas, steam & air conditioning (-1.5%); manufacture of furniture (-0.6%); mining of metal (-0.3%) and manufacture of leather & articles thereof (-0.1%). Compared to the previous quarter, producer prices went up 1.2 percent, following a 1 percent fall in the first quarter of 2018. Producer Prices Change in Kosovo averaged 2.37 percent from 2009 until 2018, reaching an all time high of 8.30 percent in the first quarter of 2011 and a record low of -1.30 percent in the first quarter of 2014.
Producer Prices Change in Kosovo is expected to be 2.50 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 Kosovo to stand at 2.90 in 12 months time. In the long-term, the Kosovo Producer Prices Change is projected to trend around 2.30 percent in 2020, according to our econometric models.