Producer prices for final demand in the US edged up 0.1 percent from the previous month in December 2019, after being unchanged in November and missing market expectations of 0.2 percent rise. Goods inflation held steady at 0.3 percent boosted by a 3.7 percent advance in gasoline prices. Cost for diesel fuel, fresh fruits and melons, carbon steel scrap, residential electric power, and pork also moved higher, while there were declines in prices for beef and veal, jet fuel and plastic resins and materials. Meanwhile, services prices were unchanged following a 0.3 percent decrease in November, as a 2.7 percent advance in transportation and warehousing services costs were offset by a 0.3 percent decline in margins for trade services and a 0.1 percent decrease in prices for services less trade, transportation, and warehousing. Core producer prices were also 0.1 percent higher, missing forecasts of 0.2 percent. Year-on-year, the PPI rose 1.3 percent and the core index went up 1.1 percent. Producer Prices in the United States averaged 110.13 points from 2009 until 2019, reaching an all time high of 118.80 points in December of 2019 and a record low of 100.20 points in November of 2009.
Producer Prices in the United States is expected to be 119.70 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 121.41 in 12 months time. In the long-term, the United States Producer Prices is projected to trend around 126.57 points in 2020, according to our econometric models.