OREANDA-NEWS. March 9, 2010. In February 2010, the consumer price index (CPI) increased by 1.9%, m/m and 11.5%, y/y. The main CPI factors were the growth in food prices (3.5%, m/m), mainly related to the increases in the prices of sugar (17.8%, m/m), vegetables (17.0%) and milk (5.2%). 

The producer price index (PPI) also increased by 1.9%, m/m in February 2010, mainly due to the growth in the coal and iron ore extraction prices (8.6% and 4.6%, m/m, respectively).

The CPI indicator lies in line with Millennium Capital’s forecast of around 12% annual inflation in 2010. Millennium Capital considers that the CPI growth will be further driven by the natural gas price increase for households (expected at 50% in 2010) and the further rise of food prices in 1H10.