Industrial producer prices for products sold in the French market fell by 1.1% from a month earlier in December of 2018, after a downwardly revised 0.3% rise in the previous month. Manufactured product prices dropped 1% due to cost of refined petroleum product (-13.2% from -11.8%); and prices of mining and quarrying products, energy and water fell back sharply (–1.4% from +4.9% in November) mainly owing to the decline in electricity selling prices (–2.5% from +0.4%), especially on the wholesale market. Prices continued to decline for “other industrial products” (-0.2% from -0.1%) and chemical product (–1.6% from –0.4%) in the wake of the Brent price. In addition, basic metal product prices dropped for the sixth consecutive month (–0.7%), in the wake of metal prices. Also, food & beverage prices decelerated (+0.2% from +0.4%), namely the prices of processed and preserved meatgrew. Year-on-year, producer price inflation eased to 1.2% in December from 2.6% in the previous month. Producer Prices in France averaged 100.04 Index Points from 2015 until 2018, reaching an all time high of 104.30 Index Points in November of 2018 and a record low of 96.50 Index Points in April of 2016.
Producer Prices in France is expected to be 106.00 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 France to stand at 105.67 in 12 months time. In the long-term, the France Producer Prices is projected to trend around 118.00 Index Points in 2020, according to our econometric models.