US producer prices fell 0.2 percent from a month earlier in December 2018, following a 0.1 percent increase in November and compared to market expectations of a 0.1 percent drop. The cost of wholesale goods fell 0.4 percent, the same as in November, with energy prices declining the most since September 2015 (-5.4 percent vs -5 percent). In addition, the cost of services was 0.1 percent lower (vs 0.3 percent in November), led by a 0.3 percent decrease in the index for trade services. The core index, which excludes food and energy, edged down 0.1 percent in December after rising 0.3 percent in November and missing forecasts of a 0.2 percent gain. On a yearly basis, producer prices climbed 2.5 percent and the core index increased 2.7 percent. Considering 2018 full year, producer inflation averaged 2.5 percent, the same as in 2017. Producer Prices in the United States averaged 109.24 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 118.47 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 121.14 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.