Turkey: Inflation hits five-month low in October
November 4, 2013
In October, consumer prices jumped 1.80% over the previous month, marking the largest monthly increase in a year. The print followed the 0.77% rise recorded in September and overshot the 1.60% increase the market had expected. According to the statistical office, the rise was mostly due to higher prices for clothing and footwear as well as for food and non-alcoholic beverages. Annual inflation moderated from 7.9% in September to 7.7% in October, the lowest reading in five months.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 1.37% over the previous month (September: +0.71% month-on-month), which drove annual core inflation to 7.8%, up from 7.7% in September.
The Central Bank of Turkey (CBRT) sees inflation ending 2013 at 6.8%, before decelerating to 5.3% in 2014. The Bank's official inflation target remains at 5.0%. FocusEconomics panelists expect inflation to close this year at 7.5%, which is up 0.1 percentage points from last month's forecast. For 2014, the panel sees inflation moderating to 6.5% by year-end, which is unchanged over the previous month's estimate.