OREANDA-NEWS. September 18, 2009. Rosstat reported that producer prices increased by 1.4% MoM in August, but have decreased by 10.8% YoY. Oil & gas prices rose by 3.2% MoM, metals were up 1.6% MoM, reported the press-centre of OTKRITIE FC.

Also, Rosstat published its estimates for CPI for the first two weeks of September. For the second week in a row inflation stood at zero. In the same period of 2008 CPI grew by 0.3%. That means that annual inflation can now be estimated at 11.3%, after standing at 11.6% at the end of August.

View: We regard this new data as positive. It is worth noting that the increase of PPI can be attributed to an increase of prices in export-oriented industries, and thus, the increase is not detrimental to the domestic market and should not have a strong effect on CPI. Moreover, the increase in PPI in certain industries will, without a doubt, increase revenues and improve financials. The decrease of consumer prices will make it easier for CBR to ease monetary policy, mainly in the form of further interest rate cuts, which is also positive for the economy.