Russia Producer-Price Growth Eases for Second Month as GDP Slows

Russian producer-price growth decelerated for a second month in November as oil-products costs eased and an economic slowdown continued.

Producer prices rose 6.7 percent from a year earlier, the Federal Statistics Service in Moscow said today in an e-mailed statement. That’s less than the 7.5 percent median estimate of eight economists in a Bloomberg survey. Prices fell 1.2 percent from the previous month.

Analysts are downgrading their growth projections for the world’s biggest energy exporter as economic expansion slows to the weakest since a recovery began at the start of 2010. Europe’s debt crisis is weakening demand for Russian commodities and the Economy Ministry has cut this year’s forecast for industrial-output growth to 3.2 percent from 3.6 percent.

“Economic growth has slowed and many producers are already having to cut prices to maintain demand,” Olga Sterina, an analyst at Moscow-based Uralsib Capital, said today by phone. The producer-price dynamics “reflect current economic trends.”

Prices in mining advanced 13.8 percent from a year earlier in November, while they rose 7.4 percent in utilities and 3.9 percent in manufacturing, according to today’s statement.

To contact the reporter on this story: Olga Tanas in Moscow at otanas@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.