Turkey: Inflation continues to rise
February 5, 2012
In January, consumer prices rose 0.56% over the previous month. The figure was virtually unchanged from the 0.58% increase recorded in December but overshot market expectations of a 0.40% increase. As a result, annual inflation stepped up from 10.4% in December to 10.6%, which marked the highest level observed since November 2008. The monthly increase mainly reflected higher prices for food and non-alcoholic beverages, transportation as well as for housing, water and electricity. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose a subdued 0.12% over the previous month. Annual core inflation inched up from 9.8% in December to 9.9% in January, the highest level seen since October 2008. The Central Bank of Turkey (CBRT) sees inflation ending the year at 6.5%. The official inflation target, however, remains at 5.0% for 2012 and 2013.