Turkey: Inflation slows in February
March 4, 2013
In February, consumer prices added 0.30% over the previous month, which represents the lowest monthly increase seen since July 2012. The reading undershot both the 1.65% rise tallied in the previous month and market expectations of a 0.40% increase. The monthly price increase mainly reflected higher prices for housing as well as for hotels, cafes and restaurants.
Building on the milder monthly increase, annual inflation fell from 7.3% in January to 7.0% in February.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, added 0.04% over the previous month (January: +0.92% month-on-month). As a result, annual core inflation remained stable at January's 6.9%.
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%.
FocusEconomics Consensus Forecast panellists anticipate inflation to close this year at 6.3%, which is unchanged from last month's forecast. For 2014, the panel anticipates inflation to moderate to 5.9%.