Producer prices for final demand in the US fell by 0.1 percent in January 2019, the same as in the previous month and compared with market expectations of a 0.1 percent gain. Price of goods dropped 0.8 percent, the largest decrease since September 2015, driven by lower cost of energy (-3.8 percent) and food (-1.7 percent). Meanwhile, cost of services rose 0.3 percent, after being unchanged in the previous month. The core index, which excludes food and energy, increased 0.3 percent in January, rebounding from a 0.1 percent fall in December and above market consensus of 0.2 percent. On a yearly basis, producer prices went up 2.0 percent and the core index increased 2.6 percent. Producer Prices in the United States averaged 109.31 Index Points from 2009 until 2019, reaching an all time high of 117.30 Index Points in November of 2018 and a record low of 100.20 Index Points in November of 2009.
Producer Prices in the United States is expected to be 121.00 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 the United States to stand at 125.00 in 12 months time. In the long-term, the United States Producer Prices is projected to trend around 129.02 Index Points in 2020, according to our econometric models.