Turkey: Inflation continues to slow
January 3, 2013
In December, consumer prices added 0.38% over the previous month. The reading mirrored the result tallied in the previous month but overshot market expectations of a 0.15% increase. The monthly price rise mainly reflected a strong increase in prices for food and non-alcoholic beverages as well as for communications. Despite the monthly increase, annual inflation dropped from 6.4% in November to 6.2% in December, its lowest level since September 2011. In addition, the print came in well below the 10.5% tallied by the end of 2011.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, added 0.17% over the previous month (November: +0.84% month-on-month). As a result, annual core inflation remained stable at November's 6.0%.
The Central Bank of Turkey (CBRT) sees inflation ending 2013 at 5.3%. The official inflation target, however, remains at 5.0%.