PRAGUE, March 15 (Reuters) - Czech industrial producer
prices fell by 0.3 percent in February from January, showing an
annual decline of 2.0 percent, data showed on Monday.
Analysts had forecast a 0.1 percent month-on-month increase
in industrial PPI and a 1.6 percent year-on-year drop
<CZ/ECON04> <CZ/ECON15>.
In January, producer prices dropped 1.5 percent
year-on-year.
The statistics bureau said agricultural producer prices also
dipped by 0.3 percent on the month, and showed a 5.6 percent
year-on-year drop, slowing from a 6.3 percent fall in January.
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KEY POINTS:
(change in percent) Feb Jan Feb forecast
PPI
month/month -0.3 0.5 0.1
year/year -2.0 -1.5 -1.6
(For full table of data........................[])
- Prices of food products dropped by 1.1 percent month on month.
- Prices of metals and metal products fell by 1.2 percent.
- Prices of coke and refining products rose by 1.2 percent from
January.
- Prices of chemicals and chemical products increased by 0.8
percent on the month.
- Construction work prices rose 0.1 percent on the month and
grew 0.3 percent year-on-year.
- Prices in the service sector grew 0.1 percent on the month and
dropped 1.0 percent year-on-year due to a rise in advertising
prices.
COMMENTS:
PAVEL SOBISEK, CHIEF ECONOMIST, UNICREDIT, PRAGUE
"A drop in food prices was particularly surprising, as it
meant in interruption in the dampening of deflation. But we
think it is only a one-off exception. In this segment, prices
will rise in coming months."
"In the year-on-year comparison, the data is affected the
the fact that the crown was reaching record lows in February
last year and its appreciation must have pushed producer prices
down."
"This is unlikely to... change the central bank's views (to
keep rates at record lows in coming months)."
PIOTR MATYS, ECONOMIST, 4CAST
"The Feb PPI report confirmed that inflationary pressures
are still subdued in the Czech economy."
"While the economy is in recovery mode, there is still
limited room for producers to increase prices amid still soft
demand. The CNB should leave interest rates on hold in the
coming months."
DAVID MAREK, CHIEF ANALYST, PATRIA FINANCE
"The price development both in industry and in agriculture
indicates that there are practically no inflation pressures in
the domestic economy."
"The economy rose from a recession but is lagging its
potential so deeply that there is no threat of inflation."
"For the central bank it means it can hold fire. A first
move in interest rates should take place at the end of the year,
the same as the ECB and the Fed."
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).
- February consumer inflation []
- January industrial output figures []
- Report on last Czech c.bank rate decision......[]
[] [] []
LINKS:
- For further details on February 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 Jana Mlcochova; editing by Michael Winfrey)
