INSTANT VIEW 1-Slovak Aug CPI rises to 2.3 pct yr/yr

...percent, the Statistics Office said on 
Tuesday. 
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KEY POINTS: 
SLOVAK HEADLINE CPI     AUG 07     AUG 07 FCASTS 
  pct change mo/mo       +0.1          -0.1 
  pct change yr/yr       +2.3          +2.2 
     
(for full table please click ............ [ID:nPRG000494]) 
     
- August core inflation rate, which excludes the impact of 
changes to state-regulated prices and excise taxes, was flat 
month-on-month, compared with the market forecast of -0.1 
percent. 
- Housing, water, electricity, gas and other fuels prices rise 
by 0.4 percent in August, after being flat in July. 
- Prices of food and non-alcoholic beverages fall 0.4 percent on 
the month in August after a 0.6 percent drop in July. 
- Transportation prices, influenced mainly by oil costs, rise 
0.6 percent on the month in August, after a 0.2 percent growth 
in July. 
 
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 
August on September 14. 
- The market followed local inflation data in the past because 
of their earlier release, but analysts have 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 partly due 
to the government pressure on utilities. 
- The central bank, which cut its key two-week repo rate by 25 
basis points to 4.25 percent in March and April, after a rising 
crown tightened monetary conditions and helped improve the 
inflation outlook, held interest rates steady in July. 
     
LINKS: 
- For further details on August 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 
 
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