hosted by
funded by
Country Report Turkey May 2011
PDF
HTMLEconomic performance: Consumer price inflation dips under 4% in March
Despite strong domestic demand growth, a weaker lira and rising commodity prices, the annual rate of consumer price inflation has declined steadily since September 2010, falling to another 41-year low of 3.99% in March 2011. In March motor fuel prices rose by about 3% month on month, clothing and footwear prices were 0.8% higher for seasonal reasons, and the prices of some durable goods increased, possibly in response to the recent weakness of the lira. However, the index for food and non-alcoholic drinks prices, which usually continues to rise in March, owing to the impact on output of winter conditions, fell by 0.4% month on month.
Although inflation surprised on the low side in March, the annual rate is expected to rise again from April, reflecting a less favourable baseline in 2010 and the impact of higher global commodity prices. The official target for end-2011 is 5.5%, with a tolerance band of ±2 percentage points. The upward trend in global commodity prices was reflected in strong producer price inflation data, which will feed into consumer prices with a lag of a few months.
| Inflation | |||||||||||||
| (% change year on year, unless otherwise indicated) | |||||||||||||
| 2010 | 2011 | ||||||||||||
| Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | |
| Consumer prices (2003=100) | 9.6 | 10.2 | 9.1 | 8.4 | 7.6 | 8.3 | 9.2 | 8.6 | 7.3 | 6.4 | 4.9 | 4.2 | 4.0 |
| % change month on month | 0.6 | 0.6 | -0.4 | -0.6 | -0.5 | 0.4 | 1.2 | 1.8 | 0.0 | -0.3 | 0.4 | 0.7 | 0.4 |
| Food & non-alcoholic beverages | 11.2 | 11.8 | 6.7 | 5.6 | 5.5 | 10.4 | 15.3 | 17.1 | 12.4 | 7.0 | 7.1 | 4.5 | 3.5 |
| % change month on month | 0.6 | 0.1 | -4.4 | -2.5 | -0.7 | 3.0 | 4.7 | 4.5 | -1.9 | -2.7 | 1.6 | 2.5 | -0.4 |
| Clothing & footwear | 4.6 | 4.1 | 3.8 | 5.0 | 5.9 | 6.3 | 5.1 | 4.3 | 3.7 | 4.7 | 5.2 | 5.3 | 5.4 |
| % change month on month | 0.4 | 10.6 | 11.2 | 0.4 | -5.2 | -4.8 | -2.2 | 7.6 | 3.9 | -1.8 | -7.8 | -5.2 | 0.8 |
| Housing, water, electricity, gas & other fuels | 4.9 | 6.1 | 8.6 | 8.4 | 8.3 | 7.7 | 7.4 | 5.3 | 5.2 | 5.9 | 4.9 | 4.4 | 4.6 |
| % change month on month | 0.2 | 0.1 | 0.4 | 0.5 | 0.3 | 0.1 | 0.3 | 0.2 | 0.6 | 1.2 | 0.6 | -0.1 | 0.4 |
| Household goods | 0.2 | 3.2 | 3.6 | 4.0 | 3.7 | 3.5 | 3.8 | 1.2 | 8.6 | 3.3 | 3.6 | 4.7 | 6.1 |
| % change month on month | -0.5 | 0.7 | 0.1 | 0.4 | 0.6 | 0.0 | 0.5 | -0.1 | 0.6 | 0.3 | 1.0 | 0.9 | 0.9 |
| Transportation | 12.7 | 14.7 | 13.8 | 10.2 | 10.1 | 8.1 | 8.0 | 6.2 | 5.4 | 6.8 | 4.6 | 6.0 | 6.9 |
| % change month on month | 0.7 | 0.1 | 0.0 | -0.4 | 0.5 | -0.2 | 0.1 | 0.4 | 0.5 | 1.1 | 1.4 | 1.8 | 1.6 |
| Producer prices (1997=100) | 8.6 | 10.4 | 9.2 | 7.6 | 8.2 | 9.0 | 8.9 | 9.9 | 8.2 | 8.9 | 10.8 | 10.9 | 10.1 |
| % change month on month | 1.9 | 2.4 | -1.2 | -0.5 | -0.2 | 1.2 | 0.5 | 1.2 | -0.3 | 1.3 | 2.4 | 1.7 | 1.2 |
| Source: Turkstat. | |||||||||||||
Download the numbers in Excel
