Industrial producer prices in the Euro Area rose 0.2 percent from a month earlier in July 2019, recovering from a 0.6 percent drop in June and matching market expectations. Main upward pressure came from energy (1.0 percent vs -2.2 percent) and capital goods (0.1 percent vs flat reading). In contrast, intermediate goods costs continued to fall (-0.3 percent vs -0.2 percent) while prices for consumer goods were unchanged. Year-on-year, producer price inflation slowed sharply to 0.2 percent in July, the lowest since November 2016. Producer Prices in the Euro Area averaged 80.35 Index Points from 1981 until 2019, reaching an all time high of 106.20 Index Points in October of 2018 and a record low of 49.10 Index Points in January of 1981.
Producer Prices in Euro Area is expected to be 107.30 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 Euro Area to stand at 107.00 in 12 months time. In the long-term, the Euro Area Producer Prices is projected to trend around 111.10 Index Points in 2020, according to our econometric models.