Producer prices for final demand in the US rose 0.1 percent from a month earlier in August 2019, after a 0.2 percent gain in July and above market expectations of a flat reading. The cost of services jumped (0.3 percent vs -0.1 percent) while goods prices posted the biggest decline in seven months (-0.5 percent vs 0.4 percent). Excluding food and energy, producer prices advanced 0.3 percent in August after falling for the first time in two-and-a-half years in July. Year-on-year, the PPI rose 1.8 percent, beating market consensus of 1.7 percent; and the core index rose 2.3 percent, also above forecasts of 2.2 percent. Producer Prices in the United States averaged 109.84 Index Points from 2009 until 2019, reaching an all time high of 118.60 Index Points in August of 2019 and a record low of 100.20 Index Points in November of 2009.
Producer Prices in the United States is expected to be 118.93 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 the United States to stand at 120.43 in 12 months time. In the long-term, the United States Producer Prices is projected to trend around 124.62 Index Points in 2020, according to our econometric models.