OREANDA-NEWS. October 08, 2009. Rosstat issued report on inflation (CPI) in September. As in the previous month, inflation was unchanged MoM. Annual inflation now stands at 10.7%, a significant improvement since August when it stood at 11.6%, reported the press-centre of OTKRITIE FC.

There is a seasonal element to the low inflation figures posted in the last two months, such as a drop in the prices of fruits and vegetables.

View: We regard decreasing inflation as positive. First of all, it makes further rate cuts by CBR more likely, as the Bank may now act more aggressively. Second, lower inflation cushions the slump of real incomes, which is supportive of consumer demand.