Czech industrial producer prices rose by 1.2 percent in January from December, lifting the annual index (PPI) to 2.8 percent, well above the consensus market forecast and the highest monthly jump since October 2000. KEY POINTS: (change in percent) Jan Dec Jan forecast month/month 1.2 0.0 0.7 year/year 2.8 2.6 2.3 (For full table of data...........................[nPRA001161) - A 7.5 percent rise in electricity, gas and water prices is as the heart of the increase. Other power and heating related prices also rise significantly. - The major exception comes in coke and crude oil refinery prices, which dip 6.2 percent, their sixth consecutive monthly fall. - Separately, the statistical bureau says agriculture producer prices rise 2.1 percent in January from December to post an 11.8 percent year-on-year increase, up sharply from a 4.9 percent annual gain a month earlier. - The bureau said it had revised the weighting structure from 2005, but that the calculation of industrial producer and construction prices did not change. However, agriculture prices and service prices from January 2005 to December 2006 are no longer valid. 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. - Jan consumer inflation [ID:nL14403418] - Dec industrial output figures [ID:nL14213337] - Report on last Czech c.bank rate decision [ID:nPRA001122] [ID:nL02157584] [ID:nL25513531] LINKS: - For further details on January 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
[PRAGUE/Reuters/Finance.cz]