BRATISLAVA, July 10 (Reuters) - Slovak consumer prices rose
by 0.4 percent month-on-month in June, keeping the annual
inflation rate unchanged over the previous month at 4.6 percent,
the Statistics Office said on Thursday.
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KEY POINTS:
SLOVAK HEADLINE CPI JUNE 08 JUNE 08 FCASTS
pct change mo/mo +0.4 +0.3
pct change yr/yr +4.6 +4.6
(for full June table please click ........ [])
- June core inflation, which excludes the impact of changes to
state-regulated prices and excise taxes, is 0.4
percent on the month and 4.8 percent on the year.
- The category of housing, water, electricity, gas and other
fuel prices is up 0.3 month-on-month in June, after a 0.1
percent rise in May.
- Prices of food and non-alcoholic beverages rise 0.7 percent
on the month in June, after a 1.0 percent increase in May.
- Transportation prices, influenced mainly by oil costs, rise
by 1.0 percent on the month in June after a 0.8 rise in May.
ANALYST COMMENTS
MARIA VALACHYOVA, SENIOR ANALYST, SLOVENSKA SPORITELNA
"June inflation was touch above our expectations. The
surprise was on the side of imputed rent. Food and fuel prices
remain key inflation drivers."
"Inflation could accelerate further to up to 4.9 percent in
July-August, and start to decelerate afterwards."
"There are no implications for the central bank's monetary
policy settings. The National Bank of Slovakia will not react to
these figures at all, as it is tracking the European Central
Bank now."
"The crown currency is still strong and providing the
necessary tightening."
PIOTR MATYS, ANALYST, 4CAST LONDON
"Slovakia's CPI arrived in line with our and market
expectations. The breakdown shows that inflationary pressure
from food and non-alcoholic beverages eased further in May."
"This was however offset by rising pressure from housing and
transport. The former increased to 0.3 percent month-on-month,
from 0.1 percent, while the latter edged higher to 1.0 percent
month-on-month, from 0.8 percent."
"The general picture remains unchanged -- inflation is still
driven mainly by cost-push factors."
VILIAM PATOPRSTY, CHIEF ANALYST, UNICREDIT BANK
"Food prices were a surprise for us... We expected seasonal
effects to counter global trends in food prices."
"Another key driver were prices of transportation, boosted by
fuel prices ... but we expected that."
"Inflation could peak at around 5.0 percent in July -
August."
BACKGROUND:
- Inflation data were calculated according to domestic
methodology.
- The central bank (NBS) sets its goals according to inflation
calculated under the EU-harmonised consumer price index as part
of Slovakia's euro adoption in 2009.
- The Statistics Office will release June EU-norm inflation
data on July 16.
- Both local and EU-norm inflation have picked up speed in the
past few months due to rising costs of food and oil.
- Despite accelerating price growth, Slovakia met the inflation
criterion for euro adoption and will join the single currency
area in January next year.
- The central bank held the key two-week repo rate at 4.25
percent for the 14th month in a row in June and it is expected
to keep borrowing costs stable after the European Central Bank
increased its interest to 4.25 percent in June.
LINKS:
- For further details on June 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........................[]
- Slovak speed money guide ..............................<SKK/1>
- Slovak benchmark state bond prices .................<0#SKBMK=>
- Slovak forward money market rates ....................<SKKFRA>
(Reporting by Peter Laca and Martin Santa)
