Turkey: Inflation eases in September
October 3, 2011
In September, consumer prices rose 0.75% over the previous month, which overshot the 0.68% increase expected by market analysts. The monthly reading came in slightly above the 0.73% increase in August but was short of the 1.23% increase tallied in September 2010. Annual inflation dropped from 6.7% in August to 6.2% in September. The monthly increase reflected higher prices for food and non-alcoholic beverages as well as housing. Meanwhile, the core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.79% over the previous month. Annual core inflation jumped from 6.5% in August to 7.4%. According to its August Inflation Report, the Central Bank of Turkey (CBT) sees year-end inflation at 6.9% for 2011 and 5.2% for 2012. The official year-end inflation target remains at 5.5% for this year and at 5.0% for 2012.