16 Sep 2009 16:02

Russian producer prices grow 1.4% in August, below forecasts

MOSCOW. Sept 16 (Interfax) - Producer prices in Russia increased 1.4% in August 2009 following growth of 1.8% in July and 2.2% in June, the Federal State Statistics Service (Rosstat) reported on Wednesday.

Producer prices grew 13.5% in January-August 2009.

The August increase was slightly lower than the 1.7% rise analysts polled by Interfax had anticipated at the end of the month.

Producer prices have increased for seven months in a row. They grew 0.6% in May, 2.4% in April, 2.9% in March and 5.1% in September. Prior to this, producer prices had been on the decline from September 2008 until January 2009, falling 5% in September, 6.6% in October, 8.4% in November, 7.6% in December and 3.4% in January.

Compared to August 2008, producer prices declined 10.8% in August 2009.

The fuel and energy extractive sector saw producer prices rise 2.9% in August and 52.8% in the first eight months of 2009. In the extractive industry, the biggest increase was seen in the liquefying and re-gasification of natural gas for transportation at 23.8%.

Producer prices in the processing industries grew 1.4% in August and 4.8% in the first eight months of the year. In the processing industries, producer prices for petroleum products rose 5.5% in August, artificial and synthetic fibers - 6.5% and pharmaceutical products - 4.8%. In the metals industry, producer prices for metal construction materials grew 4.7% and for ferrous metals 4.6%.

Prices in the utilities sector edged down 0.3% in August, but grew 18.2% in the first eight months of 2009.

A consensus forecast compiled by Interfax at the end of August predicted producer prices would grow 12.9% in 2009.