Industrial producer prices in the Euro Area dropped 0.3 percent month-over-month in November 2018, following a 0.8 percent increase in the prior month and compared with market expectations of a 0.2 percent fall. It is the first drop in producer prices since June 2017, as energy prices declined 1.1 percent, after rising 2.7 percent in October. Meantime, cost was flat for capital goods (from 0.2 percent in November); durable consumer goods (from 0.1 percent) and non-durable consumer goods (from -0.1 percent). In contrast, prices went up slightly for intermediate goods (0.1 percent after showing no change in October). Year-on-year, producer prices rose 4 percent, the least since June and below market consensus of 4.1 percent. Producer Prices in the Euro Area averaged 79.91 Index Points from 1981 until 2018, 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 106.00 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 Euro Area to stand at 109.00 in 12 months time. In the long-term, the Euro Area Producer Prices is projected to trend around 112.91 Index Points in 2020, according to our econometric models.