Turkey - Inflation
Inflation eases in June
In June, consumer prices increased 0.31% over the previous month, which was below the 0.40% rise recorded in May and marked the lowest print in seven months. According to the statistical office, the increase primarily resulted from higher prices for education, health as well as for hotels, cafes and restaurants.
Annual inflation moderated from May’s 9.7%, which represented the highest level since April 2012, to 9.2% in June. June’s result overshot the 8.8% that market analysts had expected.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.38% over the previous month in June (May: +1.26% month-on-month). Annual core inflation stabilized at the previous month’s 9.6% in May, which marked the highest reading in over two years.
The Central Bank of Turkey (CBRT) sees inflation ending 2014 at 7.6% before slowing to 5.0% by the end of 2015. The Bank’s official inflation target is 5.0%. FocusEconomics panelists expect inflation to close 2014 at 8.3%, which is up 0.3 percentage points from last month’s forecast. For 2015, the panel sees inflation moderating to 6.7% by year-end.
Turkey - Inflation Data
|Inflation Rate (CPI, annual variation in %)||6.3||8.6||6.5||8.9||7.5|
5 years of economic forecasts for more than 30 economic indicators.
Turkey Inflation Chart
Source: Statistical Institute and FocusEconomics calculations.
|Bond Yield||8.7||1.16 %||Jul 18|
|Exchange Rate||2.12||-0.76 %||Jul 18|
|Stock Market||82,315||0.65 %||Jul 18|
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July 17, 2014
At its 17 July monetary policy meeting, the Central Bank of the Republic of Turkey (CBRT) cut the one-week repo rate by 50 basis points to 8.25%, which followed the previous month’s 50 basis points cut.
July 11, 2014
The current account balance recorded a USD 3.4 billion deficit in May (April: USD 4.8 billion deficit), which marked a notable improvement over the USD 7.6 billion shortfall recorded in the same month last year.
July 8, 2014
In May, industrial production expanded a calendar-adjusted 3.3% over the same month last year, which was below the 4.6% increase tallied in April and represented the weakest growth in seven months.
July 3, 2014
In June, consumer prices increased 0.31% over the previous month, which was below the 0.40% rise recorded in May and marked the lowest print in seven months.
July 1, 2014
The HSBC Manufacturing Purchasing Managers Index (PMI) fell from 50.1 in May to 48.8 in June, which represented the lowest level since August 2011.