INSTANT VIEW 1-Slovak Sept EU-norm CPI above fcasts

...the 
Slovak Statistics Office said on Tuesday. 
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 KEY POINTS: 
 SLOVAK EU-NORM INFLATION        SEPT 07     SEPT 07 FORECAST 
  pct change mo/mo                +0.3        +0.1 
  pct change yr/yr                +1.7        +1.6 
(Details of Sept inflation data .............[ID:nPRG000543]) 
  
- Food and non-alcoholic beverages, which have a strong 
weighting in the consumer price basket, rise by 0.8 percent 
month-on-month, after a 1.0 percent drop in August. 
- Housing, water, electricity, gas and other fuels prices, which 
pushed inflation up last year, rise by 0.1 percent on the month 
in September, after a 0.1 percent increase in August. 
- Annual price growth in the housing category, which has the 
strongest weighting in the basket, was 2.7 percent in September. 
- Transportation prices fall by 0.1 percent month-on-month, 
after 0.5 percent growth in August. 
     
    MARKET REACTION: 
    - The Slovak crown was at 33.680 per euro  as of 
0705 GMT, compared with 33.670 before the data release. It 
closed at 33.735 on Monday. 
     
    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 rose 0.2 percent on the 
month in September, putting the annual rate at 2.8 percent. 
    - Slovakia aims to meet all criteria for euro adoption in 
2008. The central bank predicts the EU-norm inflation rate of 
1.5 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 inflation outlook. 
    - The bank left the interest rates unchanged in September. 
    LINKS: 
- For further details on September 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]