INSTANT VIEW 3-Czech June PPI 0.8 pct month-on-month

                                
 PRAGUE, July 14 (Reuters) - Czech industrial producer prices
rose 0.8 percent in June from May, faster than market forecasts,
putting the annual rate at 5.3 percent from May's 5.2 percent.
                                
 The statistical bureau said agricultural producer prices
dipped 0.5 percent in June on the month, for a 25.4 percent
year-on-year increase, decelerating from May's 28.2 percent.
****************************************************************
KEY POINTS:
(change in percent)       June       May       June forecast
 month/month              0.8        1.0        0.6
 year/year                5.3        5.2        5.0

 (For full table of data...........................[nPRA002036])

- The monthly growth in the producer price index (PPI) was led
by a 5.7 percent monthly rise in coke and refinery products, and
a 2.3 percent growth in metal products prices. Food and tobacco
producer prices rose 0.4 percent.

                                
 COMMENTS
                                
 MICHAL BROZKA, ANALYST, RAIFFEISEN             
                                
 "The structure of PPI is not surprising: it is driven by the
high price growth of commodities on global markets."
                                
 "Like with consumer prices, we can expect that industrial
producer prices will remain high during the summer and should
fall only in the fourth quarter when annual PPI could be around
4 percent."
                                
 
                                
 RADOMIR JAC, CHIEF ANALYST, GENERALI PPF ASSET MANAGEMENT
                                
 "Producer prices are driven by the prices of oil and
refining products, which will also push inflation up in the
upcoming months, but the strong crown is cooling the price
pressures."
                                
"The decline in agricultural prices offsets the impact of
soaring oil prices so I do not expect a significant impact of
this figure on markets."
                                
 
                                
 JAN VEJMELEK, ANALYST, KOMERCNI BANKA
                                
 "Producer prices are being driven by oil prices and refining
products which are growing globally, so I do not see any direct
impact on domestic monetary policy."
                                
 "Agricultural prices dipped which is a good signal for the
future development of food prices."
                                
 
                                
 PETR SKLENAR, ANALYST, ATLANTIK FT 
                                
 "The biggest increase was from prices of oil products and
metals, so there was no surprise even if it was higher than
expected. Both effects are from global developments." 
                                
 "The dip in agricultural prices can be taken positively.
Part of the decrease is from seasonal factors, and prices in
agriculture have higher volatility. We have to wait to see if it
is just a one-off occurrence."
                                
 
                                
 
                                
 
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).

- June consumer inflation                        [ID:nL07157455]
                                
                              [ID:nPRA002028] [ID:nL08557579]
- May industrial output figures                  [ID:nL10597564]
- Report on last Czech c.bank rate decision      [ID:nL26205513]
                                
              [ID:nPRA001993] [ID:nPRG000874] [ID:nPRG000885]

LINKS:
- For further details on June 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

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 (Writing by Jana Mlcochova)