INSTANT VIEW 2-Slovak PPI above forecasts in Sept

...Statistics Office said on Friday. 
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KEY POINTS:   
PRODUCER PRICES              SEPT 07    SEPT 07 FORECASTS 
pct change month/month        +0.5            0.0 
pct change year/year          +1.6           +1.2 
   
  (Full table of Sept PPI data ........ [ID:nBSD000047]) 
   
 - Among the three PPI categories, prices of industrial products 
rise by 0.6 percent on the month in September, after a 0.2 
percent drop in August. 
 - Prices of electricity, gas, steam and hot water rise by 0.2 
percent month-on-month, after a 0.1 percent drop in August. 
 - Prices of raw materials rise by 1.1 percent in September, 
after a 2.6 percent fall in August. 
 - Within industrial products, refinery goods prices rise by 1.1 
percent month-on-month, after a 0.7 percent drop in August. 
 - Prices of metals and metal products rise by 0.4 percent on 
the month, after 0.5 percent drop in August. 
     
    ANALYST COMMENTS: 
    MICHAL MUSAK, ANALYST, SLOVENSKA SPORITELNA, BRATISLAVA 
    "The main factor driving prices above expectations were 
industrial products. The data have no major impact on monetary 
policy, and we still expect interest rates to stay unchanged." 
     
    MARKET REACTION 
    The Slovak crown was unchanged after PPI data, holding 
steady at 33.260 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 in September 
despite record low inflation, and is expected to stay pat in 
October too, despite jump in inflation, seen in September, 
driven by rising prices of food. 
    
   LINKS: 
 - For further details on September producer prices, Reuters 
3000 Xtra users can click on the statistics office's website: 
http://www.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]