INSTANT VIEW 2-Slovak PPI slightly above forecasts in Oct

...Statistics 
Office said on Wednesday. 
**************************************************************** 
KEY POINTS:   
PRODUCER PRICES               OCT 07     OCT 07 FORECASTS 
pct change month/month        +0.3           +0.2 
pct change year/year          +1.8           +1.7 
   
  (Full table of Oct PPI data ........ [ID:nBSD000061]) 
   
 - Among the three PPI categories, prices of industrial products 
rise by 0.4 percent on the month in October, after a 0.6 percent 
drop in September. 
 - Prices of electricity, gas, steam and hot water rise by 0.3 
percent month-on-month, after a 0.2 percent rise in September. 
 - Prices of raw materials fall by 0.6 percent in October, after 
a 1.1 percent rise in September. 
 - Within industrial products, refinery goods prices rise by 4.0 
percent month-on-month, after a 1.1 percent rise in September. 
 - Prices of metals and metal products fall by 1.0 percent on 
the month, after 0.4 percent growth in September. 
     
    ANALYST COMMENT: 
    JURAJ VALACHY, ANALYST, TATRA BANKA, BRATISLAVA 
    "After a long time, there was a rise in prices of food and 
refinery goods. The figure indicates that food prices for 
end-users could rise a little further. 
    "The (PPI) data do not change our view that interest rates 
will stay on hold." 
     
    MARKET REACTION 
    The Slovak crown was unchanged after PPI data, holding flat 
at 33.435 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. 
 - PPI has little significance for consumer price inflation, but 
its slowing trend has coincided with falling shop prices 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 October for 
the seventh month in a row despite inflation jump towards a 
10-monts high in October, and is expected to stay pat in 
December too. 
    
   LINKS: 
 - For further details on October 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 .................... 
    (Reporting by Peter Laca and Martin Santa) 
     
  Keywords: SLOVAKIA ECONOMY/PPI  
    

[BRATISLAVA/Reuters/Finance.cz]