Producer prices for final demand in the US rose by 0.6 percent in October 2018, following a 0.2 percent advance in September and easily beating market expectations of 0.2 percent. It was the biggest monthly gain in producer prices since September 2012 mainly boosted by a jump in costs for energy (2.7 percent vs -0.8 percent in September) and trade services (1.6 percent vs 0.1 percent). Prices also rose for foods (1 percent vs -0.6 percent) and transportation and warehousing services (0.6 percent vs 1.8 percent). The core index, which excludes food and energy, went up 0.5 percent in October after gaining 0.2 percent in September and also above forecasts of 0.2 percent. On a yearly basis, producer prices climbed 2.9 percent and the core index increased 2.6 percent. Producer Prices in the United States averaged 109.09 Index Points from 2009 until 2018, reaching an all time high of 117.20 Index Points in October 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.