Producer prices for final demand in the US edged up 0.1 percent in November 2018, following a 0.6 percent advance in October and compared to market expectations of a flat reading. The cost of services increased 0.3 percent (vs 0.7 percent in October), boosted by a 0.3 percent advance in the index for trade services. Meanwhile, the cost of wholesale goods fell 0.4 percent (vs 0.6 percent in October), the largest drop since May 2017, with energy prices declining the most since September 2015 (-5 percent vs 2.7 percent). Food costs increased 1.3 percent, after a 1 percent gain in October. The core index, which excludes food and energy, went up 0.3 percent in November after gaining 0.5 percent in October and also above forecasts of 0.1 percent. On a yearly basis, producer prices climbed 2.5 percent and the core index increased 2.7 percent. Producer Prices in the United States averaged 109.17 Index Points from 2009 until 2018, 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 120.00 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 120.23 in 12 months time. In the long-term, the United States Producer Prices is projected to trend around 130.00 Index Points in 2020, according to our econometric models.