INSTANT VIEW 1-Czech Dec PPI 2.5 pct y/y, tad above fcast

    Czech industrial producer prices 
held steady in December from November, lifting the annual index 
(PPI) to 2.6 percent, a touch above the consensus market 
forecast. 
 
KEY POINTS: 
(change in percent)       Dec        Nov        Dec forecast 
 month/month              0.0       -0.2       -0.1 
 year/year                2.6        2.0        2.5 
 
 (For full table of data...........................[nPRA001115) 
 
- A 0.5 percent rise in basic metals and metallurgy prices was 
offset by a 0.5 percent drop in chemicals prices and a 0.4 
percent decline in factory-gate costs for electrical and optical 
equipment. 
- Coke and crude oil refinery prices dipped 0.1 percent; other 
components of the PPI index hold steady or show little changes. 
- Separately, the statistical bureau says agriculture producer 
prices rise 3.4 percent in December from November to post a 4.9 
percent year-on-year increase, up sharply from a 1.3 percent 
annual gain a month earlier. 
 
BACKGROUND: 
- Industrial PPI and agriculture producer prices are watched 
closely by the markets as leading indicators for consumer 
inflation which is targeted by the Czech central bank (CNB). 
- However, analysts have pointed out the pass-through of changes 
in production costs into overall consumer prices has been 
limited in recent months. 
 
- Dec consumer inflation                         [ID:nL09833629] 
                                                 [ID:nL09931969] 
- Nov industrial output figures                  [ID:nL15857064] 
- Report on last Czech c.bank rate decision      [ID:nL20551907] 
                                                 [ID:nL20599163] 
 
LINKS: 
- For further details on December producer prices and past data, 
Reuters 3000 Xtra users can click on the statistical bureau's 
Website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-ipc 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
 ((Writing by Marek Petrus; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: CZECH ECONOMY/PRICES  
    

[PRAGUE/Reuters/Finance.cz]