Producer prices for final demand in the US increased by 0.1 percent month-over-month in February of 2019, recovering from a 0.1 percent fall in January and below market expectations of a 0.2 percent gain. Cost rebounded for energy (1.8 percent from -3.8 percent in January) and prices decreased at a softer pace for food (-0.3 percent from -1.7 percent). Meanwhile, cost of services showed no growth, after a 0.3 percent rise in January. The core index, which excludes food and energy, went up 0.1 percent from the previous month in February, after a 0.3 percent increase in January and missing market consensus of 0.2 percent. On a yearly basis, producer prices rose 1.9 percent and the core index advanced 2.5 percent. Producer Prices in the United States averaged 109.39 Index Points from 2009 until 2019, reaching an all time high of 117.50 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 121.00 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 125.00 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.