OREANDA-NEWS. September 20, 2010. Producer prices in Russia increased by 3.3% MoM in August– the highest monthly increase since February 2009 – pushing the 12-month rolling PPI rate from 6.8% YoY in July to 9% YoY last month, according to Rosstat. The August hike in the PPI rate resulted from a 13% MoM rise in crude oil prices and 26.7% MoM growth in wholesale prices for wheat flour and cereals, reported the press-centre of OTKRITIE Financial Corporation.

View: PPI statistics are yet another reminder of the major recent change in inflation trends in Russia. As the country enters the autumn season – which traditionally is accompanied by a seasonal rise in inflation – there is greater likelihood that we will soon witness the same inflationary conditions that Russia experienced before the crisis. The build-up of inflation is also likely to be supported by a moderate but sustainable expansion in economic activity and growing investor optimism, both domestically and globally. We expect that by year’s end the PPI rate will climb to 14% YoY and CPI will reach 9.2% YoY.