INSTANT VIEW 2-Slovak PPI below forecasts in Aug

...at 0.5 percent, the Slovak Statistics 
Office said on Friday. 
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KEY POINTS:   
PRODUCER PRICES               AUG 07     AUG 07 FORECASTS 
pct change month/month        -0.2           +0,3 
pct change year/year          +0.5           +1.0 
   
  (Full table of July PPI data ........ [ID:nBSD000032]) 
   
 - Among the three PPI categories, prices of industrial products 
fall by 0.4 percent on the month in August, after a 0.5 percent 
rise in July. 
 - Prices of electricity, gas, steam and hot water drop by 0.1 
percent month-on-month, after a 0.5 percent rise in July. 
 - Prices of raw materials fall by 3.6 percent in August, after 
a 0.1 percent increase in July. 
 - Within industrial products, refinery goods prices decrease by 
0.7 percent month-on-month, after a 1.5 percent rise in July. 
 - Prices of metals and metal products fall by 0.5 percent on 
the month, after 2.4 percent increase in July. 
     
    ANALYST COMMENT: 
    PIOTR MATYS, ANALYST, 4CAST, LONDON 
    "All in all very positive (data) as pressure on PPI eased 
significantly. However, it will not have strong impact on NBS 
(central bank) policy since the pass through effect on CPI is 
rather limited." 
     
    MARKET REACTION 
    The Slovak crown was unchanged after PPI data, holding 
steady at 33.860 per euro  as of 0710 GMT. 
    
    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 kept interest rates on hold at the monthly 
policy meeting on Tuesday despite record low inflation, saying 
cautious policy approach was needed as some upward inflation 
risks existed in the fast growing economy. 
    
   LINKS: 
 - For further details on August producer prices, Reuters 3000 
Xtra users can click on the statistics office's website: 
http://www.statistics.sk/webdata/english/index2_a.htm   
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