INSTANT VIEW 1-Czech Feb PPI above mkt fcast

    PRAGUE, March 14 (Reuters) - Czech industrial producer 
prices rose by 0.5 percent in February from January, lifting the 
annual index (PPI) to 3.2 percent, well above the consensus 
market forecast. 
 
KEY POINTS: 
(change in percent)       Feb        Jan        Feb forecast 
 month/month              0.5        1.2        0.2 
 year/year                3.2        2.8        2.8 
 
 (For full table of data...........................[nPRA001197) 
 
- The statistics office says a slowing in growth of electricity, 
gas and water prices to 0.1 percent from 7.5 percent was the 
reason for PPI decreasing month-on-month. 
- Coke and crude oil refinery prices dip 0.3 percent, their 
seven consecutive monthly fall. 
- Separately, the statistical bureau says agriculture producer 
prices rise 0.6 percent in February from January to post a 13.0 
percent year-on-year increase, up from a 2.1 percent annual gain 
a month earlier. 
- The bureau said it had revised the weighting structure from 
2005, but that the calculation of industrial producer and 
construction prices did not change. However, agriculture prices 
and service prices from January 2005 to December 2006 are no 
longer valid. 
 
BACKGROUND: 
- Industrial PPI and agriculture producer prices are watched 
closely by the markets as leading indicators for consumer 
inflation which is targeted by the Czech central bank (CNB). 
- However, analysts have pointed out the pass-through of changes 
in production costs into overall consumer prices has been 
limited in recent months. 
 
- Feb consumer inflation                         [ID:nL08458496] 
- Jan industrial output figures                  [ID:nL13408467] 
- Report on last Czech c.bank rate decision      [ID:nPRA001176] 
                                [ID:nL01449456] [ID:nLPRA001190] 
 
LINKS: 
- For further details on February producer prices and past data, 
Reuters 3000 Xtra users can click on the statistical bureau's 
Website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-ipc 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
 ((Writing by Marek Petrus; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: CZECH ECONOMY/PRICES