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. Last Updated: 07/27/2016

Producer Prices Fall 8th Month

Producer prices, an early indicator of inflation, slid in July for the eighth consecutive month as industrial production slumped and companies competed by discounting products amid waning demand, the State Statistics Service said Thursday.

The price of goods leaving factories and mines declined a record 12.3 percent compared with July 2008 after sliding an annual 9.4 percent in June.

Prices began declining last December after the recession deepened and energy costs fell during the global slowdown. The Economic Development Ministry expects inflation to range from 12 percent to 12.5 percent in 2009 from last year’s 13.3 percent.

Consumer prices rose in July for the first time in four months, growing 12 percent from 11.9 percent in June.

Cost pressures in Russian service industries remained “subdued” in July, VTB Capital said in its Purchasing Managers’ Index published on Aug. 5.