INSTANT VIEW 1-Slovak Jan PPI below mkt forecasts

    Slovak producer prices fell 
0.5 percent month-on-month in January, below market 
expectations, putting the annual inflation rate for factory-gate 
costs (PPI) at 3.4 percent, data showed on Wednesday. 
 
KEY POINTS: 
PRODUCER PRICES              JAN 07    JAN 06  JAN FCST 
 pct change month/month       -0.5      +1.4    +0.3 
 pct change year/year         +3.4      +8.7    +4.3 
 
(Full table of Dec inflation data ............. [ID:nPRG000249]) 
 
- Of the three PPI categories, prices of industrial products 
fall by 0.6 percent on the month, after a 0.3 percent drop in 
December. 
- Prices of electricity, gas, steam and hot water fall by 0.3 
percent, month-on-month, after a 1.2 percent drop in December. 
- Prices of raw materials fall by 2.2 percent in January, after 
a 3.2 percent fall in the previous month. 
- Within industrial products, refinery goods fell by 8.0 
percent month-on-month, after a 0.9 percent drop in December. 
  
BACKGROUND: 
- Slovak producer prices shot up in 2006 mainly due to 
higher cost of oil and natural gas. 
- Accelerating PPI had coincided with rising consumer inflation, 
which prompted the central bank to raise key interest rate by 
175 basis points in four steps last year to 4.75 percent in 
2006. 
- But the central bank has held rates steady since September 
last year after rising crown helped tame consumer inflation. 
- 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 January 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...... 
- Schedule of upcoming indicator releases............ 
- Summary of short-term economic data forecasts...... 
 
- Stories on Slovak currency moves........................[SKK/] 
- Slovak speed money guide .............................. 
- Slovak benchmark state bond prices ................. 
- Slovak forward money market rates .................... 

[BRATISLAVA/Reuters/Finance.cz]