Turkey: Inflation rebounds at the outset of the year
February 4, 2013
In January, consumer prices added 1.65% over the previous month. The reading overshot both the 0.38% rise tallied in the previous month and market expectations of a 1.15% increase. The monthly price increase mainly reflected higher prices for alcoholic beverages and tobacco as well as for food and non-alcoholic beverages.
Building on the strong monthly increase, annual inflation rose from 6.2% in December to 7.3% in January, which represents the highest level seen in three months.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, added 0.92% over the previous month (December: +0.17% month-on-month). As a result, annual core inflation climbed from 6.0% in December to 6.9% in January.
The Central Bank of Turkey (CBRT) sees inflation ending 2013 at 5.3%, before decelerating to 4.9% in 2014. The official inflation target, however, remains at 5.0%.