Turkey: Inflation rises to highest level in five months
October 3, 2012
In September, consumer prices added 1.03% over the previous month. The reading was above the 0.56% rise recorded in August but slightly undershot market expectations of a 1.10% increase. As a result of the monthly figure, annual inflation rose from 8.9% in August to 9.2%, its highest level in five months. The monthly price rise mainly reflected a sharp increase in prices for food and non-alcoholic beverages. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, added 0.34% over the previous month (August: -0.12% month-on-month). Despite the monthly increase, annual core inflation dropped from 8.5% in August to 8.0% in September. The Central Bank of Turkey (CBRT) sees inflation ending the year at 6.2% and moderating to 5.1% by the end of 2013. The official inflation target, however, remains at 5.0% for both years.