Turkey: Inflation drops in November on lower food prices
December 3, 2010
In November, consumer prices remained broadly flat over the previous month, increasing 0.03% over October. The figure was well below both the 1.83% price rise recorded in October as well as market expectations, which had anticipated consumer prices would rise 1.00% over the previous month. The monthly reading was a result of a sharp increase in prices for clothing and footwear (+3.87% month-on-month), which was offset by a 1.89% decrease in prices for food and non-alcoholic beverages. As a result of the monthly flat reading, annual headline inflation fell from 8.6% in October to 7.3% in November. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, increased 0.80% over the previous month, driving annual core inflation to 5.0%, up from October's 4.8%. The Central Bank forecasts inflation to end this year 7.5%, before declining to 5.4% in 2011 and to 5.1% in 2012.