INSTANT VIEW 1-Slovak April EU-norm CPI above forecasts

...percent, 
data from the Statistics Office showed on Wednesday. 
     
KEY POINTS: 
SLOVAK EU-NORM INFLATION    APRIL 07   MARKET FORECAST 
  pct change mo/mo            0.3         0.1 
  pct change yr/yr            2.0         1.9 
   
  (Details of Feb inflation data ............. [ID:nPRG000350]) 
 
- Food and non-alcoholic beverages, which have a strong 
weighting in the consumer price basket, rise by 1.0 percent 
month-on-month, after a 0.1 percent drop in March. 
- Housing, water, electricity, gas and other fuels prices, which 
pushed inflation up last year, were flat on the month in April, 
compared with a 0.1 percent drop in March. 
- Annual price growth in the housing category, which has the 
strongest weighting in the basket, is 2.6 percent, after 2.6 
percent rise in March. 
- Transportation prices rise by 0.6 percent month-on-month, 
after a 0.3 percent rise in March. 
     
BACKGROUND: 
- The central bank follows inflation calculated by the 
EU methodology as a part of Slovakia's plan to adopt the euro in 
2009. 
- Prices under the local methodology rose by 0.2 percent on the 
month in April, putting the annual rate at 2.7 percent. 
- Slovakia aims to meet all criteria for euro adoption in 2008. 
The central bank predicts EU-norm inflation rate to fall to 1.5 
percent at the end of 2007. 
- 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...... 
- Schedule of upcoming indicator releases............ 
- Summary of short-term economic data forecasts...... 
- Stories on Slovak currency moves........................[SKK/] 
- Slovak speed money guide ................................ 
- Slovak benchmark state bond prices ................. 
- Slovak forward money market rates .................... 
 

[BRATISLAVA/Reuters/Finance.cz]