INSTANT VIEW 1-Slovak July inflation hits record low

...1.2 
percent, the Slovak Statistics Office said on Thursday. 
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KEY POINTS: 
SLOVAK EU-NORM INFLATION    JULY 07    JULY 07 FORECAST 
  pct change mo/mo           -0.1         0.0 
  pct change yr/yr           +1.2        +1.4 
   
  (Details of July inflation data ............. [ID:nPRG000461]) 
 
- Food and non-alcoholic beverages, which have a strong 
weighting in the consumer price basket, fall by 1.3 percent 
month-on-month, after a 0.4 percent fall in June. 
- Housing, water, electricity, gas and other fuels prices, which 
pushed inflation up last year, rise by 0.1 percent on the month 
in July, matching June's increase. 
- Annual price growth in the housing category, which has the 
strongest weighting in the basket, was 2.7 percent in July for 
the second month in a row. 
- Transportation prices rise by 0.2 percent month-on-month, 
after 0.3 percent growth in June. 
     
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 were flat on the month in 
July, putting the annual rate at 2.3 percent. 
- Slovakia aims to meet all criteria for euro adoption in 2008. 
The central bank predicts the EU-norm inflation rate to fall to 
1.3 percent at the end of 2007. 
- The central bank cut its key two-week repo rate by 25 basis 
points in March and April, bringing it to the current 4.25 
percent, after the rising crown tightened monetary conditions 
and helped improve the inflation outlook. 
- The bank left the interest rates unchanged in July. 
     
LINKS: 
- For further details on July 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]