Turkey: Inflation accelerates slightly in March
April 3, 2013
In March, consumer prices added 0.66% over the previous month, which marks an acceleration over the 0.30% rise seen in the previous month. In addition, the reading overshot market expectations of a 0.40% increase. The monthly price increase mainly reflected higher prices for food and non-alcoholic beverages as well as for clothing and footwear. Building on the faster monthly increase, annual inflation rose from 7.0% in February to 7.3% in March.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, added 0.38% over the previous month (February: +0.04% month-on-month). As a result, in March, annual core inflation remained stable at February'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 panellists expect inflation to close this year at 6.3%, which is unchanged from last month's forecast. For 2014, the panel sees inflation moderating to 5.9% by year-end.