July 22. The commercial production data for Russia in June 2008 show that the slowdown in certain industries was caused by cost-push inflation, ruble strengthening and credit appreciation, Russian Ministry of Industry and Trade (Minpromtorg) said in its report. "The data for June show that Russian manufacturing enterprises have experienced more and more difficulties with maintaining applicable levels of competitiveness. A slowdown is ongoing in certain industries, primarily due to cost-push inflation, national currency strengthening and growing credit prices amid lack of resources for the production modernization necessary to boost production efficiency (labor productivity, energy and material intensity)", the ministry said in its report. As was reported, in June 2008, commercial production rates in Russia plummeted to 0.9% in annual terms, a minimum value since 2002. According to Minpromtorg, the commercial production development analysis shows that in 1H 2008, production performances dropped as compared to 1H 07. Thus, growth of commercial production amounted to 105.8% versus 107.1% in 1H 2007. Downbeat performances were shown by processing industries (104.8% against 111.4%) and mineral extraction activities (100.5% versus 103%).