Turkey: Inflation drops in December amid lower food prices
January 3, 2011
In December, consumer prices fell 0.3% over the previous month. The drop followed the flat reading recorded in November, and was below market expectations that consumer prices would rise 0.3% over the previous month. The monthly decline was the result of a sharp decrease in prices for food and non-alcoholic beverages (-2.7% month-on-month), which was partially offset by a +2.0% increase in prices for miscellaneous goods and services. The monthly fall in prices led to annual headline inflation declining from 7.3% in November to 6.4% in December. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, increased 0.2% over the previous month, driving annual core inflation to 5.3%, up from November's 5.0%. The Central Bank forecasts inflation to end 2011 at 5.4% before declining to 5.1% in 2012.