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.
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