Turkey Inflation

Turkey

Turkey: Inflation eases in June

July 3, 2014

In June, consumer prices increased 0.31% over the previous month, which was below the 0.40% rise recorded in May and marked the lowest print in seven months. According to the statistical office, the increase primarily resulted from higher prices for education, health as well as for hotels, cafes and restaurants.

Annual inflation moderated from May’s 9.7%, which represented the highest level since April 2012, to 9.2% in June. June’s result overshot the 8.8% that market analysts had expected.

The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.38% over the previous month in June (May: +1.26% month-on-month). Annual core inflation stabilized at the previous month’s 9.6% in May, which marked the highest reading in over two years.

The Central Bank of Turkey (CBRT) sees inflation ending 2014 at 7.6% before slowing to 5.0% by the end of 2015. The Bank’s official inflation target is 5.0%. FocusEconomics panelists expect inflation to close 2014 at 8.3%, which is up 0.3 percentage points from last month’s forecast. For 2015, the panel sees inflation moderating to 6.7% by year-end.


Author: Ricard Torné, Head of Economic Research

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Turkey Inflation June 2014 0

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Turkish Statistical Institute (TurkStat).


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