INSTANT VIEW 2-Slovak April CPI touch above forecasts

...Office said 
on Friday. 
 
KEY POINTS: 
SLOVAK HEADLINE CPI      APRIL 07    MARCH 07 FCASTS 
  pct change mo/mo        +0.2         +0.1 
  pct change yr/yr        +2.7         +2.6 
     
(for full table pls click ............ [ID:nPRG000344]) 
     
- Analysts surveyed by Reuters had expected consumer prices to 
have risen by 0.1 percent on the month, for an annual rate of 
2.6 percent in March. 
- The core inflation rate, which excludes the impact of changes 
to state-regulated prices and excise taxes, was forecast at 0.2 
percent month-on-month and at 2.4 percent on an annual basis. 
- Housing, water, electricity, gas and other fuels are flat for 
a second consecutive month in April. 
- Prices of food and non-alcoholic beverages rise 0.7 percent on 
the month in April after a being flat in March. 
- Transportation prices, influenced mainly by oil costs, rise 
0.7 percent on the month in April, after a 0.1 percent rise in 
March. 
     
    ANALYST COMMENTS: 
    EDUARD HAGARA, ANALYST, ING BANK, BRATISLAVA 
    "I think this was a touch higher than the central bank 
expected, as they had predicted a negative contribution of 
healthcare services. 
    "This figure does not change our rate outlook, and we expect 
a 25 basis points rate cut in the third quarter. 
 
BACKGROUND: 
- Inflation data were calculated according to domestic 
methodology. 
- The central bank sets its goals according to inflation 
calculated under the EU-harmonised consumer price index as part 
of Slovakia's goal to adopt the euro in 2009. 
- The Statistics Office will release EU-norm inflation data for 
April on May 16. 
- The market followed local inflation data in the past because 
of their earlier release, but analysts started to pay more 
attention to statistics by EU-methodology after the two figures 
began to show wider differences earlier in 2007. 
- Slovak inflation accelerated in 2005 and 2006 due to hikes in 
natural gas and heating prices for households. 
- But price growth slowed down at the start of 2007 as the 
effect of energy price hikes faded away. 
- The central bank cut its key two-week repo rate by 25 basis 
points to 4.25 percent in April after rising crown tightened 
monetay conditions and helped improve inflation outlook. 
     
LINKS: 
- For further details on April inflation and other past data, 
Reuters 3000 Xtra users can click on the Slovak Statistics 
Office's website: 
    http://wwww.statistics.sk/webdata/english/index2_a.htm 
 
- For LIVE Slovak economic data releases, click on...... 
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- Slovak forward money market rates .................... 
 

[BRATISLAVA/Reuters/Finance.cz]