Nov 28 (Reuters) - Slovak producer prices rose 0.1 percent month-on-month in October, putting the annual inflation rate for factory-gate costs (PPI) at 7.1 percent, data showed on Tuesday. PRODUCER PRICES OCT 06 SEPT 06 OCT 05 pct change month/month +0.1 -0.7 +0.5 pct change year/year +7.1 +7.5 +5.7 - Analysts polled by Reuters had forecast producer prices to be flat on a monthly basis in October, and predicted the annual rate at 6.9 percent <SK/ECON04> <SK/ECON09>. - Of the three PPI categories, prices of industrial products fell by 0.4 percent on the month, after a 0.7 percent drop in September. - Prices of electricity, gas, steam and hot water rose by 0.8 percent, month-on-month, after a 0.8 percent drop in September. - Prices of raw materials were flat, compared with a 1.0 percent monthly drop in the previous month. - Within industrial products, refinery goods were down 6.7 percent month-on-month, after a 7.1 percent drop in September. BACKGROUND: - Slovak producer prices have shot up this year mainly due to the higher cost of oil and natural gas. - Accelerating PPI has coincided with increasing risks for consumer inflation, which prompted the central bank to raise interest rates by 25 basis points in September, a fourth rise in 2006. - The central bank has reiterated a cautious stance after the September rate increase and has said more policy tightening may be needed in the future if upward pressures on prices persists. - Analysts expected the central bank to keep the key two-week repo rate unchanged at 4.75 percent at the monthly policy meeting later on Tuesday, but they predicted another rate increase by at least 25 basis points in the coming months. - Slovakia needs to curb consumer price inflation by spring 2008 to fulfil its goal of adopting the euro in 2009. 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......<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 Chris Pizzey; bratislava.newsroom@reuters.com; Reuters Messaging: martin.santa.reuters.com@reuters.net; +421 2 5341 8402)) Keywords: SLOVAKIA PPI/