INSTANT VIEW 2-Czech Aug industry PPI dips, farm prices jump

...growth to 3.7 percent from July's 4.2 
percent. 
**************************************************************** 
KEY POINTS: 
(change in percent)       Aug        July       Aug forecast 
 month/month             -0.1        0.2        0.2 
 year/year                3.7        4.1        4.1 
 
 (For full table of data...........................[nPRA001499]) 
 
- The statistics office says a 3.8 percent monthly drop in coke 
and crude oil refinery costs was the main driver of the dip. 
- Prices in the food processing industry rose 1.2 percent. 
- Separately, the statistical bureau said agriculture producer 
prices jumped 3.0 percent in August from July for a 15.6 percent 
year-on-year increase, up from a 11.3 percent gain a month ago. 
- Costs for construction work up 0.3 percent over the previous 
month, while prices for construction materials and goods edge up 
0.1 percent. 
  
COMMENTARY: 
    JAN VEJMELEK, HEAD OF ECONOMIC AND STRATEGY RESEARCH, 
KOMERCNI BANKA, PRAGUE: 
    "Producer prices recorded significantly lower-than-expected 
dynamics. However, the link with consumer prices is weak in the 
short-term. The statistics of agricultural producer prices are 
more important. 
    "Those rose significantly in August, which led to a marked 
acceleration in year-on-year growth. The August drop of food 
prices in August CPI was thus a one-off affair. Food threatens 
to remain an important inflationary factor." 
     
BACKGROUND: 
- Industrial PPI and agriculture producer prices are watched 
closely by the markets as leading indicators for consumer 
inflation which is targeted by the Czech central bank (CNB). 
 
- August consumer inflation                      [ID:nL10319072] 
                                                 [ID:nPRA001491] 
- July industrial output figures                 [ID:nL10726236] 
- Report on last Czech c.bank rate decision      [ID:nL30781459] 
                  [ID:nPRA001485] [ID:nL07203646] [ID:nL3044281] 
 
LINKS: 
- For further details on August producer prices and past data, 
Reuters 3000 Xtra users can click on the statistical bureau's 
Website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-ipc 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
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- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
  
  Keywords: CZECH ECONOMY/PRICES