Turkey: Inflation continues to decline in November
December 3, 2013
In November, consumer prices increased a meagre 0.01% over the previous month, which was well below the 1.80% rise recorded in October. The increase undershot the 0.48% increase the market had expected. According to the statistical office, the rise was mostly due to higher prices for clothing and footwear as well as for healthcare. Annual inflation moderated from 7.7% in October to 7.3% in November, the lowest reading in six months.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.50% over the previous month (October: +1.37% month-on-month), which drove annual core inflation to 7.5%, down from 7.8% in October.
The Central Bank of Turkey (CBRT) sees inflation ending 2013 at 6.8%, before decelerating to 5.3% in 2014. The Bank's official inflation target remains at 5.0%. FocusEconomics panelists expect inflation to close this year at 7.5%, which is unchanged from last month's forecast. For 2014, the panel sees inflation moderating to 6.7% by year-end, which is up 0.2 percentage points over the previous month's estimate.