INSTANT VIEW 1-Slovak Jan PPI above forecasts

...factory-gate costs (PPI) at 3.8 percent, the 
Slovak Statistics Office said on Wednesday. 
 
 KEY POINTS: 
 PRODUCER PRICES              FEB 07   FEB FORECASTS 
 pct change month/month       +1.8       +0.2 
 pct change year/year         +3.8       +2.2 
 
(Full table of Feb inflation data ............. [ID:nPRG000286]) 
 
- Of the three PPI categories, prices of industrial products 
fall by 0.1 percent on the month, after a 0.6 percent drop in 
January. 
- Prices of electricity, gas, steam and hot water jump by 4.4 
percent month-on-month after a 0.3 percent drop in January. 
- Prices of raw materials rise 0.9 percent in February after a 
2.2 percent fall in the previous month. 
- Within industrial products, refinery goods fall by 11.8 
percent month-on-month after an 8.0 percent drop in January. 
  
 BACKGROUND: 
 - Slovak producer price inflation slowed down at the beginning 
of 2007 after the impact of last year's jump of energy prices 
faded away. 
 - Slowing PPI has coincided with falling consumer inflation 
rate this year. 
 - Slovakia needs to curb consumer price inflation by spring 
2008 to fulfil its goal of adopting the euro in 2009. 
 - The central bank cut the main two-week interest rate by 25 
basis points on Tuesday, responding to rising crown, healthy 
economic growth and slowing inflation. 
   
 LINKS: 
 - For further details on February producer prices, Reuters 3000 
Xtra users can click on the statistics office's website: 
    http://www.statistics.sk/webdata/english/index2_a.htm 
 
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