Actual (September): 0.3% mom; 2.4% yoy
Consensus: -0.1% mom; 2.1% yoy
Previous (August): -0.4% mom; 1.8% yoy
Producer prices rose back above two percent as food prices significantly increased. Rising prices of grains and other agricultural commodities led to higher prices of food products. Prices of basic metals and chemical products also increased. On the other hand, prices of rubber and plastic products went on decreasing.
Inflation in producer prices is likely to steadily increase in coming months and jump in electricity prices at the beginning of 2011 will take PPI inflation up to 4 percent. However, PPI increase stems from external factors and one-off shocks. Domestic capacity usage does not generate any inflationary pressures. Monetary policy can keep its current stance until 2Q-3Q 2011.