Turkey: Inflation plunges in May
June 5, 2012
In May, consumer prices declined 0.21% over the previous month. The figure contrasted the 1.52% increase recorded in April as well as market expectations of a 0.40% rise. As a result of the monthly drop, annual inflation plummeted from 11.1% in April to 8.3%, its lowest level in eight months. The monthly price drop mainly reflected a sharp fall in prices for food and non-alcoholic beverages as well as for transportation. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, added 1.08% over the previous month. Despite the rise, annual core inflation moderated from 9.8% in April to 9.3% in May. The Central Bank of Turkey (CBRT) sees inflation ending the year at 6.5% and moderating to 5.2% by the end of 2013. The official inflation target, however, remains at 5.0% for both years.