INSTANT VIEW 1-Slovak PPI below forecasts in May

...factory-gate costs (PPI) at 1.3 percent, the 
Statistics Office said on Thursday. 
 
KEY POINTS: 
 PRODUCER PRICES             MAY/07    MAY 07 FORECASTS 
 pct change month/month       -0.1           +0.1 
 pct change year/year         +1.3           +1.5 
(Full table of May PPI data ........ [ID:nPRG000402]) 
 
- Among the three PPI categories, prices of industrial products 
fall by 0.1 percent on the month, after a 0.1 percent drop in 
April. 
- Prices of electricity, gas, steam and hot water fall by 0.2 
percent month-on-month, after a 0.4 percent decrease in April. 
- Prices of raw materials rose by 0.3 percent in May after a 0.5 
percent fall in April. 
- Within industrial products, refinery goods prices rise by 1.0 
percent month-on-month after an 3.3 percent rise in April. 
  
MARKET REACTION 
    The Slovak crown did not move after better-than-expected PPI 
data, holding flat at 33.870 per euro  
     
BACKGROUND 
- Slovak producer price inflation slowed at the beginning of 
2007 after the impact of last year's jump of energy prices 
faded. 
- Slowing PPI has coincided with falling consumer inflation rate 
this year. 
- Slovakia needs to keep consumer price inflation down 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, but it left 
borrowing costs unchanged in May and June. 
  
LINKS: 
- For further details on May producer prices, Reuters 3000 
Xtra users can click on the statistics office's website: 
    http://www.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 ....................