INSTANT VIEW 2-Slovak Nov CPI slightly above forecasts

...on 
Tuesday. 
*************************************************************** 
 
KEY POINTS: 
SLOVAK HEADLINE CPI      NOV 07     NOV 07 FCASTS 
  pct change mo/mo       +0.5          +0.3 
  pct change yr/yr       +3.1          +3.0 
     
(for full table please click ............ [ID:nBSD000011]) 
     
- November core inflation rate, which excludes the impact of 
changes to state-regulated prices and excise taxes, rose 0.6 
percent month-on-month and 3.8 percent year-on-year. 
- The category of housing, water, electricity, gas and other 
fuel prices was up 0.1 month-on-month in November, matching the 
rise from September. 
- Prices of food and non-alcoholic beverages rose 1.2 percent on 
the month in November, slowing down from a 2.6 percent increase 
in October. 
- Transportation prices, influenced mainly by oil costs, rose 
0.4 percent on the month in November, after staying flat in 
October. 
     
ANALYST COMMENTS: 
    JURAJ VALACHY, ANALYST, TATRA BANKA, BRATISLAVA 
    "The reading was slightly higher than we expected, mainly 
because of prices of food and banking services." 
    "Food price growth remains strong. But the inflation number 
does not influence the monetary policy setting: the rise of food 
costs is a global factor." 
     
   MARKET REACTION: 
- The Slovak crown was unchanged after the inflation data, 
trading at 32.060 to the euro  as of 0805 GMT. 
     
BACKGROUND: 
- Inflation data were calculated according to domestic 
methodology. 
- The central bank (NBS) sets its goals according to inflation 
calculated under the EU-harmonised consumer price index as part 
of Slovakia's goal to adopt the euro in 2009. 
- The Statistics Office will release EU-norm inflation data for 
November on Dec. 14. 
- The market followed local inflation data in the past because 
of their earlier release, but analysts have started to pay more 
attention to statistics by EU-methodology after the two figures 
began to show wider differences earlier in 2007. 
- Slovak inflation accelerated in 2005 and 2006 due to hikes in 
natural gas and heating prices for households. 
- But price growth slowed at the start of 2007 partly due to 
government pressure on utilities. 
- Both local and EU-norm inflation has picked up speed in the 
past three months due to rising cst of food. 
- The central bank, which cut its key two-week repo rate by 25 
basis points to 4.25 percent in March and April, held rates 
steady for the seventh month in a row in November. 
     
LINKS: 
- For further details on November 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 .................... 
   (Reporting by Peter Laca and Martin Santa; Editing by Ruth 
Pitchford) 
    
  Keywords: SLOVAKIA INFLATION/  
    

[BRATISLAVA/Reuters/Finance.cz]