INSTANT VIEW 2-Slovak Nov CPI above market forecasts

    BRATISLAVA, Dec 11 (Reuters)  - Slovak consumer prices rose 
by 0.6 percent month-on-month in November, putting the annual 
inflation rate at 4.3 percent, the Statistics Office said on 
Monday. 
KEY POINTS: 
SLOVAK HEADLINE CPI      NOV 06    OCT 06     NOV 05 
  pct change mo/mo        +0.6      +0.2       +0.0 
  pct change yr/yr        +4.3      +3.7       +3.4 
SLOVAK CORE CPI 
  pct change mo/mo        +0.4      +0.1       +0.0 
  pct change yr/yr        +2.9      +2.4       +1.2 
 
- Analysts surveyed by Reuters had expected consumer prices 
would have risen by 0.3 percent on the month, for an annual rate 
of 4.0 percent in November. 
- The core inflation rate, which excludes the impact of changes 
to state-regulated prices and excise taxes, was forecast at 0.1 
percent month-on-month and at 2.5 percent on an annual basis. 
- Prices of food and non-alcoholic beverages rose by 0.7 percent 
on the month in November, after being flat in October. 
- Housing, water, electricity, gas and other fuels, which have 
the strongest weighting in the consumer basket rose by 1.6 
percent in November, after a 1.0 percent rise in the previous 
month. 
- Transportation prices, influenced mainly by oil costs, fell by 
0.7 percent on the month in November, after a 1.8 percent drop 
in October. 
 
COMMENTARY: 
    MARIA VALACHYOVA, SENIOR ANALYST, SLOVENSKA SPORITELNA 
    "Core items, such as shoes and clothes increased, which was 
a little surprising. Gas prices were in line with our 
expectations. We keep our forecast of a 25 basis point rate 
increase because it seems that price growth was influenced by 
factors that could be viewed ad demand-driven pressures." 
     
MARKET REACTION: 
- The crown <EURSKK=> rose to an all-time high of 35.290 per 
euro after the inflation data release, from 35.310 earlier in 
the session. 
  
 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 
November on Dec. 15. 
- The central bank sets its inflation targets according to EU 
norm data as part of Slovakia's preparation for joining the euro 
in 2009. 
- Slovak inflation accelerated last year and in 2006 due to 
hikes in natural gas and heating prices for households. 
- The central bank has raised the key two-week repo rate by 175 
basis points this year to fend off inflation risks stemming from 
high energy prices and fast economic growth. 
- A Reuters poll last week showed most analysts expecting the 
two-week repo to stay unchanged at 4.75 percent in December. 
   
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......<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: SLOVAKIA INFLATION/