BRATISLAVA, May 13 (Reuters) - Slovak consumer prices rose
by 0.2 percent month-on-month in April, putting the annual
inflation rate at 4.3 percent, the Statistics Office said on
Tuesday.
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KEY POINTS:
SLOVAK HEADLINE CPI APRIL 08 APRIL 08 FCASTS
pct change mo/mo +0.2 +0.2
pct change yr/yr +4.3 +4.2
(for full table please click ............ [])
- April core inflation, which excludes the impact of changes to
state-regulated prices and excise taxes, is 0.3
percent month-on-month and 4.6 percent year-on-year.
- The category of housing, water, electricity, gas and other
fuel prices is up 0.1 month-on-month in April, after a 0.5
percent rise in March.
- Prices of food and non-alcoholic beverages rise 1.2 percent
on the month in April, after a 0.3 percent increase in March.
- Transportation prices, influenced mainly by oil costs, drops
by 0.1 percent on the month in April after a 0.1 increase in
March.
ANALYST COMMENT:
PIOTR MATYS, ANALYST, 4CAST, LONDON
"The data was roughly in line with our expectations and
those of the market."
"The breakdown shows that inflationary pressure from food
and non-alcoholic beverages increased significantly to 1.2
percent month on month, from 0.3 percent. At the same time,
pressure from housing and transport eased."
SILVIA CECHOVICOVA, ANALYST, CSOB BANK, BRATISLAVA
"The key driver was food prices; other items were in line
with expectations."
"Higher prices of fuels are not visible yet. We will likely
see the impact in May figures."
"Food and fuel prices remain the key risks. The inflation
peak is still ahead of us. I think we will see it in the summer,
when the impact of higher tobacco prices will occur."
"We might see inflation falling below 4.0 percent, problably
only by the end of the year."
JURAJ VALACHY, ANALYST, TATRA BANKA, BRATISLAVA
"The data are more or less in line with expectations."
"Food prices are still rising by more than what we had
expected. Also, prices of problematic items, such as oil,
continue to increase."
"However, I do not think that the inflation development is
deviating from central bank expectations and it does not change
the inflation outlook."
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 goal to adopt the euro in 2009.
- The Statistics Office will release EU-norm inflation data for
April on May 15.
- 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 in 2007.
- 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 is set to 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 12th month in a row in April and it is expected
to keep borrowing costs stable for several more months before
aligning them with the euro zone.
LINKS:
- For further details on April 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; Editing by Michael
Winfrey)
