Turkey: Inflation hits six-month high in February
March 3, 2014
In February, consumer prices increased 0.43% over the previous month, which was well below the 1.98% rise recorded in January. According to the statistical office, the increase resulted primarily from higher prices for transportation as well as for hotels, cafes and restaurants. Annual inflation inched up from 7.8% in January to 7.9% in February, which marked the highest level since August 2013. The print, however, came in just below the 8.0% that market analysts had expected.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.82% over the previous month in February (January: +1.07% month-on-month). Annual core inflation rose from 7.2% in January to 8.1% in February, which marked the highest reading since August 2012.
The Central Bank of Turkey (CBRT) sees inflation ending 2014 at 6.6% before slowing to 5.0% by the end of 2015. Its official inflation target remains at 5.0%. FocusEconomics panelists expect inflation to close 2014 at 7.4%, which is up 0.1 percentage points from last month's forecast. For 2015, the panel sees inflation moderating to 6.5% by year-end.