Country Report Turkey April 2011

Economic performance: Consumer price inflation bottomed at 4.2% in February

Consumer prices rose by 0.7% month on month in February 2011. As in January, food prices rose for seasonal reasons, albeit by a relatively modest 2.5% month on month. In addition, public transport fares and the prices of transport fuels and durable goods continued to pick up owing to rising global oil prices and the recent weakness of the lira. Clothing prices went on declining owing to winter sales. Year on year, consumer price inflation slowed for the fifth consecutive month, falling to a fresh 41-year low of 4.2%. However, this rate is expected to rise again from March onwards in view of a less favourable baseline in 2010 and the continuing impact of higher global commodity prices and the weakened lira. The official annual inflation target for end-2011 is 5.5%, with a tolerance band of ±2 percentage points.

(% change year on year, unless otherwise indicated)
 2010          2011 
Consumer prices (2003=100)10.19.610.
 % change month on month1.50.60.6-0.4-0.6-
Food & non-alcoholic beverages14.811.
 % change month on month8.00.60.1-4.4-2.5-
Clothing & footwear3.
 % change month on month-5.30.410.611.20.4-5.2-4.8-
Housing, water, electricity, gas & other fuels4.
 % change month on month0.
Household goods-
 % change month on month-0.1-
 % change month on month0.
Producer prices (1997=100)6.88.610.
 % change month on month1.71.92.4-1.2-0.5-
Source: Turkstat.

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