Producer prices in Iceland increased 6.7 percent year-on-year in June 2019, slowing from a 7.8 percent gain in the previous month. It was the lowest producer inflation rate since August last year, as cost of power intensive industry dropped further (-5.5 percent from -1 percent in May) and food production prices eased (4.7 percent from 5.2 percent). Meanwhile, cost advanced at a faster pace for marine products (21.1 percent from 18.5 percent); and other manufacturing industries (13.2 percent from 12.7 percent). On a monthly basis, producer prices went up 1.2 percent, after rising 1.3 percent in the prior month. Producer Prices Change in Iceland averaged 5.47 percent from 2007 until 2019, reaching an all time high of 68.50 percent in November of 2008 and a record low of -12.40 percent in January of 2014.
Producer Prices Change in Iceland is expected to be 8.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Iceland to stand at 5.00 in 12 months time. In the long-term, the Iceland Producer Prices Change is projected to trend around 4.00 percent in 2020, according to our econometric models.