INSTANT VIEW 1-Slovak Sept CPI rises to 2.8 pct yr/yr

...said on 
Thursday. 
*************************************************************** 
 
KEY POINTS: 
SLOVAK HEADLINE CPI     SEPT 07     SEPT 07 FCASTS 
  pct change mo/mo       +0.2          +0.1 
  pct change yr/yr       +2.8          +2.7 
     
(for full table please click ............ [ID:nPRG000536]) 
     
- September core inflation rate, which excludes the impact of 
changes to state-regulated prices and excise taxes, rises 0.2 
percent month-on-month, compared with the market forecast of 
+0.1 percent. 
- Housing, water, electricity, gas and other fuel prices are 
flat month-on-month in September, after 0.4 percent growth in 
August. 
- Prices of food and non-alcoholic beverages jump 1.0 percent on 
the month in September after a 0.4 percent drop in August. 
- Transportation prices, influenced mainly by oil costs, fall by 
0.1 percent on the month in September, after a 0.6 percent 
growth in August. 
 
MARKET REACTION: 
- The Slovak crown was unchanged after the data release, 
standing at 33.580 per euro  as of 0705 GMT. It closed 
at 33.599 on Wednesday. 
     
BACKGROUND: 
- Inflation data were calculated according to domestic 
methodology. 
- The central bank sets its goals according to inflation 
calculated under the EU-harmonised consumer price index as part 
of Slovakia's goal to adopt the euro in 2009. 
- The Statistics Office will release EU-norm inflation data for 
September on October 16. 
- The market followed local inflation data in the past because 
of their earlier release, but analysts have started to pay more 
attention to statistics by EU-methodology after the two figures 
began to show wider differences earlier in 2007. 
- Slovak inflation accelerated in 2005 and 2006 due to hikes in 
natural gas and heating prices for households. 
- But price growth slowed down at the start of 2007 partly due 
to the government pressure on utilities. 
- The central bank, which cut its key two-week repo rate by 25 
basis points to 4.25 percent in March and April, after a rising 
crown tightened monetary conditions and helped improve the 
inflation outlook, held interest rates steady in September. 
     
LINKS: 
- For further details on September 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...... 
- 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]