Turkey: Inflation increases in January
February 3, 2014
In January, consumer prices increased 1.98% over the previous month, which was well above the 0.46% rise recorded in December. According to the statistical office, the increase resulted primarily from higher prices for food and non-alcoholic beverages as well as for transportation. Annual inflation rose from 7.4% in December to 7.8% in January. The increase was in line with market expectations.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 1.07% over the previous month in January (December: -0.18% month-on-month). Annual core inflation inched up from 7.1% in December to 7.2%.
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 7.2%, which is up 0.3 percentage points from last month's forecast. For 2015, the panel sees inflation moderating to 6.4% by year-end.