Turkey: Inflation jumps to highest level in over three years
May 3, 2012
In April, consumer prices jumped 1.52% over the previous month. The figure was above both the 0.41% increase recorded in March as well as market expectations of a 1.30% rise. As a result of the monthly increase, annual inflation jumped from 10.4% in March to 11.1%, its highest level since October 2008. Although broad-based, the monthly increase mainly reflected a sharp rise in prices for clothing and footwear as well for housing, water, electricity and gas. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, added 1.59% over the previous month. As a result, annual core inflation rose from 9.4% in March to 9.8% in April. The Central Bank of Turkey (CBRT) sees inflation ending the year at 6.5% and moderating to 5.2% by the end of 2013. The official inflation target, however, remains at 5.0% for both years.