Turkey: Inflation inches up in December
January 3, 2014
In December, consumer prices increased 0.46% over the previous month, which was well above the 0.01% rise recorded in November. The increase overshot the 0.30% rise the market had expected. According to the statistical office, the increase was mostly the result of higher prices for food and non-alcoholic beverages as well as for transportation. Annual inflation inched up from 7.3% in November to 7.4% in December (December 2012: 6.2%).
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, fell 0.18% over the previous month in December (November: +0.50% month-on-month), which drove annual core inflation down from 7.5% in November to 7.1%.
The Central Bank of Turkey (CBRT) sees inflation ending 2014 at 5.3%; its official inflation target remains at 5.0%. FocusEconomics panelists expect inflation to close 2014 at 6.7%, which is unchanged from last month's forecast. For 2015, the panel sees inflation moderating to 6.1% by year-end.