INSTANT VIEW 1-Slovak March PPI below forecast

...costs (PPI) at 3.1 percent, the Slovak 
Statistics Office said on Friday. 
 
 KEY POINTS: 
 PRODUCER PRICES              MARCH 07   MARCH FORECASTS 
 pct change month/month        0.0       +0.3 
 pct change year/year         +3.1       +3.5 
 
(Full table of March inflation data ........ [ID:nPRG000334]) 
 
- Among the three PPI categories, prices of industrial products 
rise by 0.6 percent on the month, after a 0.1 percent drop in 
February. 
- Prices of electricity, gas, steam and hot water fall by 0.7 
percent month-on-month, after a 4.4 percent jump in February. 
- Prices of raw materials return to negative territory, falling 
1.0 percent in March, after a 0.9 percent rise in the previous 
month. 
- Within industrial products, refinery goods prices jump by 16.7 
percent month-on-month after an 11.8 percent drop in February. 
  
 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 keep consumer price inflation down 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 in March and April, as rising crown tightened 
monetary conditions and inflation outlook improved. 
   
 LINKS: 
 - For further details on March 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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