Producer prices in Portugal declined 1.1 percent year-on-year in August 2019, following a 0.4 percent fall in the previous month. It is the sharpest decrease in producer prices since September 2016, due to lower cost of energy (-4.6 percent vs -1.8 percent) and intermediate goods (-1.1 percent vs -0.8 percent). Also, prices slowed for capital goods (0.4 percent vs 0.7 percent). In contrast, cost rose faster for consumer goods (0.8 percent vs 0.5 percent), driven by both durable (1.3 percent vs 1.2 percent) and non-durable goods (0.7 percent vs 0.4 percent). On a monthly basis, producer prices went down 0.5 percent, after being flat in the previous month. Producer Prices Change in Portugal averaged 1.53 percent from 2006 until 2019, reaching an all time high of 7.80 percent in July of 2008 and a record low of -6.70 percent in July of 2009.
Producer Prices Change in Portugal is expected to be -0.60 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 Portugal to stand at 1.00 in 12 months time. In the long-term, the Portugal Producer Prices Change is projected to trend around 1.60 percent in 2020, according to our econometric models.