INSTANT VIEW 1-Slovak Oct EU-norm CPI falls to yr low

   BRATISLAVA, Nov 16 (Reuters) - Slovak consumer prices were 
flat, month-on-month, in October, bringing the EU-norm inflation 
rate to 3.1 percent, data showed on Thursday. 
     
SLOVAK EU-NORM INFLATION       Oct/06       Sept/06      Oct/05 
  pct change mo/mo              0.0           -0.2       +1.3 
  pct change yr/yr             +3.1           +4.5       +3.5 
   
- Analysts surveyed by Reuters had expected EU-norm 
inflation to have risen by 0.1 percent month-on-month, and 3.3 
percent year-on-year in October. 
- Food and non-alcoholic beverages, which have a strong 
weighting in the consumer price basket, fell by 0.2 percent 
month-on-month, after a 0.1 percent drop in September. 
- Housing, water, electricity, gas and other fuels, which 
pushed inflation up early this year, rose 0.6 percent on the 
month in October, after a 0.1 percent growth in September. 
- Annual price growth in the housing category, which has the 
strongest weighting in the consumer basket, was 7.8 percent, 
down from 13 percent in September. 
- Transportation prices fell by 1.7 percent month-on-month, 
after a 1.9 percent drop in September. 
     
    BACKGROUND: 
 - The central bank follows inflation calculated by the 
EU methodology as a part of Slovakia's plan to adopt the euro in 
2009. 
 - Financial markets follow local-standards inflation more 
closely because it is released earlier and shows only minor 
differences from EU-norm data. Prices under the local 
methodology rose by 0.2  percent on the month and by 3.7 percent 
year-on-year in October. 
 - The central bank expects annual EU-norm inflation at 3.7 
percent in December, above the year-end target of 2.5 percent. 
 - Slovakia wants to meet all criteria for euro adoption in 
2008. The central bank predicts inflation will fall to 2.8 
percent at the end of 2007. 
 - The central bank left the key two-week repo rate unchanged at 
4.75 percent in October, after a 25 basis points hike in 
September. 
 - Analysts say more policy tightening may be needed this year 
to knock inflation down enough to meet euro entry criteria. 
     
    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......<ECONSK> 
- 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 ................................<SKK> 
- Slovak benchmark state bond prices .................<0#SKBMK=> 
- Slovak forward money market rates ....................<SKKFRA> 
 
 ((Reporting by Martin Santa, Reuters Messaging: 
martin.santa.reuters.com@reuters.net; +421 2 5341 8402)) 
  Keywords: ECONOMY SLOVAKIA INFLATION