Turkey Inflation


Turkey: Inflation accelerates in October

November 3, 2014

In October, consumer prices increased a massive 1.90% over the previous month, which was well above the 0.14% rise recorded in September. According to the statistical office, the reading was primarily the result of higher readings for clothing and footwear due to the arrival of new collections, as well as for housing, water, electricity, gas and other fuels, due to a hike in electricity and natural gas tariffs. Consequently, annual inflation inched up from 8.9% in September to 9.0% in October. The print overshot market expectations of 8.9%.

The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 1.37% in October over the previous month (September: +0.25% month-on-month). Annual core inflation stabilized at September’s 9.4% in October.

On 31 October, the Central Bank of Turkey (CBRT) raised its year-end inflation projection for 2014 from 7.6% to 8.9%, while the 2015 inflation estimate was revised up from 5.0% to 6.1%. FocusEconomics panelists expect inflation to close 2014 at 9.1%, which is up 0.3 percentage points from last month’s forecast. For 2015, the panel sees inflation moderating to 7.1% by year-end, which is unchanged from last month’s forecast.

Author: Ricard Torné, Lead Economist

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Turkey Inflation Chart

Turkey Inflation October 2014

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Turkish Statistical Institute (TurkStat).

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