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Friday, January 11, 2008

Slovakia Inflation December 2007

Slovak inflation accelerated in December to the fastest pace in a year, driven by higher global food and fuel costs. The rate advanced to 3.4 percent from 3.1 percent in November, the highest since December 2006. Consumer prices rose a monthly 0.3 percent after advancing 0.5 percent in the previous month.

Slovakia is working to try to keep inflation in check to stay on target to adopt the euro a year from now,thus becoming the second former communist country to join the eurozone.

The koruna was trading at 33.301 against the euro at 9:24 a.m. in Bratislava, down from yesterday's close of 33.271. The statistical office also also said today the country posted a trade deficit after two monthly surpluses in November.

Slovakia is scheduled to file its application for the switchover in the first half of this year. To adopt the common currency Slovakia has to keep its 12-month average inflation rate to within 1.5 percentage points of the average of the three European Union nations that have the slowest price growth.

Rising food and oil prices pushed end-2007 inflation above the central bank's October 2.4 percent forecast, after it was revised from the 1.9 percent rate estimated three months earlier.

Food prices rose 0.7 percent in the month, followed by transportation prices, which advanced 0.6 percent.

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