INSTANT VIEW 2-Slovak Oct CPI touch above mkt fcasts

    BRATISLAVA, Nov 10 (Reuters) - Slovak consumer prices rose 
by 0.2 percent month-on-month in October, putting the annual 
inflation rate at 3.7 percent, the Statistics Office said on 
Friday. 
     
SLOVAK HEADLINE CPI      OCT 06    SEPT 06    OCT 05 
  pct change mo/mo        +0.2      -0.3       +1.1 
  pct change yr/yr        +3.7      +4.6       +3.3 
SLOVAK CORE CPI 
  pct change mo/mo        +0.1      -0.3       +0.1 
  pct change yr/yr        +2.4      +2.4       +1.1 
 
- Analysts surveyed by Reuters had expected consumer prices to 
rise by 0.1 percent on the month putting the annual rate at 3.6 
percent in October. 
- The core inflation rate, which excludes the impact of changes 
to state-regulated prices and excise taxes, was forecast to be 
flat month-on-month and rise by 2.3 percent year-on-year in 
October. 
- Prices of food and non-alcoholic beverages were flat on the 
month in October, after a 0.1 percent rise in September. 
- Housing, water, electricity, gas and other fuels, which have 
the strongest weighting in the consumer basket rose by 1.0 
percent in October, after being flat in the previous month. 
- Transportation prices, influenced mainly by oil costs, fell by 
1.2 percent on the month in October, after a 2.2 percent drop in 
September. 
 
COMMENTARY 
 SILVIA CECHOVICOVA, ANALYST, CSOB BANK 
    "The annual decline is because of the basis effect, when 
prices of energies rose significantly in October 2005. A decline 
in transportation prices also had a positive impact." 
    "We still expect an increase in interest rates by 25 basis 
points in November, which we would consider an end of the 
monetary policy tightening cycle." 
     
MARKET REACTION: 
- The Slovak crown was slightly weaker after the data, trading 
at 36.188 per euro at 0715 GMT. 
     
BACKGROUND: 
- Inflation data were calculated according to domestic 
methodology. 
- The central bank more closely follows inflation calculated 
under the EU-harmonised consumer price index, but the data 
calculated according to the local method usually show only small 
differences from the EU norm figures. 
- The Statistics Office will release EU norm inflation data for 
October on Nov. 16. 
- The central bank sets its inflation targets according to EU 
norm data as part of Slovakia's preparation for joining the euro 
in 2009. 
- The Slovak inflation rate rose sharply last year and in 2006 
due to hikes in natural gas and heating prices for households. 
- Analysts expect the central bank to raise the key two-week 
repo rate this year after three increases by 50 and one by 25 
basis points earlier in 2006. 
   
LINKS: 
- For further details on October 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......<ECONCZ> 
- Schedule of upcoming indicator releases............<SK/ECON09> 
- Summary of short-term economic data forecasts......<SK/ECON04> 
 
- Stories on Slovak currency moves........................[SKK/] 
- Slovak speed money guide ..............................<CZK/1> 
- Slovak benchmark state bond prices .................<0#SKBMK=> 
- Slovak forward money market rates ....................<SKKFRA> 
 
 ((Reporting by Martin Santa, editing by Alan Crosby; 
bratislava.newsroom@reuters.com; Reuters Messaging: 
martin.santa.reuters.com@reuters.net; +421 2 5341 8402)) 
  Keywords: ECONOMY SLOVAKIA INFLATION