Turkey: Inflation soars to two-year high in April
May 5, 2014
In April, consumer prices increased 1.34% over the previous month, which was above the 1.13% rise recorded in March. The print overshot the 0.92% increase that market analysts had expected. According to the statistical office, the increase was primarily the result of higher prices for clothing and footwear as well as for furnishings and household equipment. Annual inflation increased from 8.4% in March to 9.4% in April, which marked the highest level since April 2012.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 1.71% over the previous month in April (March: +1.17% month-on-month). Annual core inflation increased from 8.9% in March to 9.4% in April, which marked the highest reading in two years.
The Central Bank of Turkey (CBRT) sees inflation ending 2014 at 7.6% before slowing to 5.0% by the end of 2015. The Bank's official inflation target remains at 5.0%. FocusEconomics panelists expect inflation to close 2014 at 8.0%, which is unchanged from last month's forecast. For 2015, the panel sees inflation moderating to 6.7% by year-end.