Turkey: Inflation continues to slow in September
October 3, 2013
In September, consumer prices rose 0.77% over the previous month. The increase contrasted the 0.10% decline recorded in August and overshot the 0.61% rise the market had expected. According to the statistical office, the increase was mostly due to higher prices for transportation and for hotels, cafes and restaurants. Annual inflation eased from 8.2% in August to 7.9% in September, the lowest reading in four months.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.71% over the previous month (August: +0.19% month-on-month) driving annual core inflation to reach 7.7%, up from 7.3% in July.
The Central Bank of Turkey (CBRT) sees inflation ending 2013 at 6.2%, before decelerating to 5.0% in 2014. The Bank's official inflation target remains at 5.0%. FocusEconomics panelists expect inflation to close this year at 7.2%, which is up 0.1 percentage points from last month's forecast. For 2014, the panel sees inflation moderating to 6.4% by year-end, which is up 0.1 percentage points over the previous month's estimate.