Turkey: Inflation eases in February
March 6, 2012
In February, consumer prices rose 0.56% over the previous month. The figure mirrored the 0.56% increase recorded in January and came in line with market expectations. Despite the monthly rise, annual inflation moderated for the first time in five months, stepping down from 10.6% in January to 10.4%. The monthly increase mainly reflected higher prices for food and non-alcoholic beverages, which more than offset a sharp drop in clothing and footwear prices. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, remained flat over the previous month. Annual core inflation fell from 9.9% in January to 9.6% in February. 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.