Turkey: Inflation falls to two-year low in April
May 3, 2013
In April, consumer prices added 0.42% over the previous month, which marks a deceleration over the 0.66% rise seen in the previous month. The reading undershot market expectations of a 0.68% increase and mainly reflects higher prices for clothing and footwear. As a result of the soft monthly rise, annual inflation fell from 7.3% in March to 6.1% in April, which represents the lowest reading seen since April 2011.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, jumped 1.24% over the previous month (March: +0.38% month-on-month). However, in April, annual core inflation moderated from 6.9% in March to 6.6% in April.
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 6.5%, which is up 0.2 percentage points from last month's forecast. For 2014, the panel sees inflation moderating to 6.0% by year-end.