PRAGUE, Dec 15 (Reuters) - Czech industrial producer prices
rose 0.5 percent month-on-month in November and increased 2.7
percent year-on-year, above market expectations and its biggest
annual rise in two years, data showed on Wednesday.
Analysts had forecast a 0.2 percent month-on-month increase
in industrial PPI and a 2.4 percent year-on-year growth.
<CZ/ECON04> <CZ/ECON15> <ECONCZ>
In October, producer prices were unchanged month-on-month
and 2.6 percent year-on-year.
The month-on-month development was affected by a 0.8 percent
growth in food prices, along with a 2.0 percent rise in prices
of coke and refining products.
The statistics bureau said agricultural producer prices rose
by 1.7 percent on the month, and showed its fourth annual growth
in a row with 23.4 percent, a szharp turnaround from a series of
falls in the previous two years.
****************************************************************
KEY POINTS:
(change in percent) Nov Oct Nov forecast
PPI
month/month 0.5 0.0 0.2
year/year 2.7 2.6 2.4
ANALYST COMMENT
JIRI SKOP, ANALYST, KOMERCNI BANKA
"The structure developed in line with our expectations, as
prices in the food industry grew and sectors influenced by the
price of oil."
"The development in farm prices, which grew by 1.7 percent,
is important from the perspective of the future development of
consumer prices."
"This indicates continuing pressures on growth in food
prices as part of the consumer index."
VOJTECH BENDA, CHIEF ECONOMIST, ING COMMERCIAL BANKING
"The key news is that agriculture prices continue to
accelerate, which can also be see in prices of industrial
producers that process agricultural goods, so we can expect
continuing food inflation."
"The second factor are prices of energy commodities, which
is a global trend."
"For the central bank, this food inflation is not strong
enough information, for now, to prompt it to reassess its
neutral stance to rates and monetary policy."
(For full table of data........................[])
- In the year-on-year comparison, producer prices were driven by
a 19.6 percent rise in prices of coke and refinery products, the
statistics office said.
- Prices of chemicals rose by 12.4 percent year-on-year and
prices of metal prices were up 9.5 percent.
- Construction work prices were flat on a month-on-month basis
and dipped 0.3 percent year-on-year.
- Prices in the service sector dropped by 0.1 percent on the
month and fell by 1.2 percent year-on-year.
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).
- November consumer inflation [] []
- October industrial output figures []
- Report on last Czech c.bank rate decision......[]
[] [] []
LINKS:
- For further details on November 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 <ECONCZ>
- Instant Views on other Czech data []
- Overview of Czech macroeconomic indicators []
- Key data releases in central Europe []
- For Czech money markets data click on <CZKVIEW>
- Czech money guide <CZK/1>
- Czech benchmark state bond prices <0#CZBMK=>
- Czech forward money market rates <CZKFRA>
(Writing by Jason Hovet)
