Turkey: Inflation rises in July
August 3, 2012
In July, consumer prices declined 0.23% over the previous month. The drop followed the 0.90% fall recorded in June and exceeded market expectations of a 0.10% decline. Despite the monthly fall, annual inflation rose from 8.9% in June to 9.1% owing to an unfavourable base effect. The monthly price drop mainly reflected a sharp decline in prices for clothing and footwear. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, fell 0.13% over the previous month. As a result, annual core inflation inched down from 9.2% in June to 9.1% in July. The Central Bank of Turkey (CBRT) recently revised its forecasts and now sees inflation ending the year at 6.2% (previously: 6.5%) and moderating to 5.1% by the end of 2013 (previously: 5.2%). The official inflation target, however, remains at 5.0% for both years.