OREANDA-NEWS. February 08, 2010. In January 2010 CPI (Consumer Price Index) amounted to 1.8%, m/m, resulting in 11.1% annual indicator. The key CPI contributor was the increase in food prices (3.3%, m/m). Namely, sugar and vegetable prices rose by 14.7% and 14.3%, m/m, respectively, while milk prices rose by 7.7%, m/m in January.

The Producer Price Index (PPI) amounted to 1.9%, m/m, in January mainly due to the growth of utility distribution prices (4.4%, m/m). This resulted in the annual PPI growth of 14.3%, y/y in January 2010.

Millennium Capital: the growth in the consumer prices may be partly explained by the seasonal food price increase. Still, the estimated deficits of such products as sugar and milk additionally drive their price increase. Millennium Capital expects the food price growth to continue in 1H10, while the additional hike in the consumer prices is expected in April-May 2010, in case the new government will raise the natural gas prices for households. This will result in two-digit CPI in 2010.