INSTANT VIEW 1-Czech March PPI above market forecast

...annual increase to 3.6 percent, the 
highest in nearly two years. 
 
KEY POINTS: 
(change in percent)       March      Feb       March forecast 
 month/month              0.5        0.5        0.3 
 year/year                3.6        3.2        3.4 
 
 (For full table of data...........................[nPRA001250) 
 
- The statistics office says a 5.2 percent monthly gain in coke 
and crude oil refinery costs and a 1.4 percent rise in chemicals 
prices are the main driving forces of the monthly PPI increase. 
- Separately, the statistical bureau said agriculture producer 
prices rose 2.0 percent in March from February to post a 15.0 
percent year-on-year increase, up from a 13.0 percent annual 
gain a month earlier. 
 
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 recently. 
 
- March consumer inflation                       [ID:nL10126435] 
- Feb industrial output figures                  [ID:nL11620237] 
- Report on last Czech c.bank rate decision      [ID:nPRA001221] 
                 [ID:nL06735130] [ID:nPRA001222] [ID:nL29598110] 
 
 
LINKS: 
- For further details on March 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                       
 
  
  Keywords: CZECH ECONOMY/PRICES