Spain's producer price inflation fell to 1.6 percent year-on-year in December 2018 from a downwardly revised 2.9 percent in the previous month. It was the lowest rate since March as prices rose at a softer pace for both energy (4 percent vs 7.5 percent in November) and intermediate goods (1.5 percent vs 2.4 percent), while the cost of consumer goods declined further (-0.6 percent vs -0.5 percent). Meanwhile, capital goods inflation was unchanged at 0.9 percent. On a monthly basis, producer prices dropped 1.1 percent, the same pace as in November. Producer Prices Change in Spain averaged 5.11 percent from 1976 until 2018, reaching an all time high of 24.60 percent in December of 1977 and a record low of -6.70 percent in July of 2009.
Producer Prices Change in Spain is expected to be 1.50 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 Spain to stand at 1.80 in 12 months time. In the long-term, the Spain Producer Prices Change is projected to trend around 2.00 percent in 2020, according to our econometric models.