Turkey - Inflation
Inflation unexpectedly accelerates in July
In July, consumer prices increased 0.45% over the previous month, which was above the 0.31% rise recorded in June. According to the statistical office, the increase was primarily the result of higher prices for recreation and culture as well as for alcoholic beverages and tobacco. Annual inflation increased from 9.2% in June to 9.3% in July. The print overshot market expectations of the index slowing to an 8.8% increase.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.56% over the previous month in July (June: +0.38% month-on-month). Annual core inflation inched up from 9.6% in June to 10.0% in July, which marked the highest reading since October 2008.
The Central Bank of Turkey (CBRT) sees inflation ending 2014 at 7.6% before slowing to 5.0% at the end of 2015. The Bank’s official inflation target remains at 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||8.9||-1.22 %||Aug 29|
|Exchange Rate||2.16||0.26 %||Aug 29|
|Stock Market||80,313||-0.65 %||Aug 29|
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August 28, 2014
The consumer confidence index, which is published by the Statistical Institute in cooperation with the Central Bank, declined from 73.9 points in July to 73.2 points in August, which marked the lowest level since March.
August 27, 2014
At its 27 August monetary policy meeting, the Central Bank of the Republic of Turkey (CBRT) decided to maintain the one-week repo rate at 8.25%, as was expected by a majority of market participants.
August 25, 2014
The Real Sector Confidence Index published by the Central Bank fell from 109.0 in July to 106.8 in August.
August 14, 2014
The current account balance recorded a USD 4.1 billion deficit in June (May: USD 3.5 billion deficit), which marked an improvement over the USD 4.8 billion shortfall recorded in the same month last year.
August 8, 2014
In June, industrial production expanded a calendar-adjusted 1.4% over the same month last year, which was below the revised 3.5% increase tallied in May (previously reported: +3.3% year-on-year) and represented the weakest growth since August 2013.