Turkey's annual inflation at 9.16 percent in June
Business |
Turkey´s June inflation rose 0.31 percent, and the highest monthly increase was in education with 1.72 pct.
The average price level of everyday consumer goods in June rose 0.31 percent in Turkey, well above economists' expectations, the country's statistical authority announced on Thursday.
According to a report released by Turkstat, the Consumer Price Index rose 9.16 percent compared to the same month last year - fifty points less than the country´s yearly inflation in May.
The highest monthly increase was in education, which rose 1.72 percent, while the largest decrease was in clothing and footwear which fell by 1.25 percent.
The Producer Price Index (PPI), which measures the selling prices of domestically produced goods and services, increased 0.06 percent. Annual inflation in June was 9.75 percent in PPI.
The Turkey´s Central Bank expects that foreign demand and net exports growth will support disinflation in the country and will lead to a significant improvement in the current account deficit in 2014.
The bank, at its June 22 meeting, reduced its one-week repurchase rate from 9.50 percent to 8.75 percent and left the borrowing rate unchanged on Thursday for the second time since it was hiked to protect the lira on January 28.
On Tuesday, the bank said in the meeting minutes that pricing behavior needs to be closely monitored with the cumulative impact of food inflation, the exchange rate figure reaching annual headline inflation of around 6.5 percentage points and the effects of ongoing high inflation rates.
The World Bank pointed to Turkey's high exports and sustained government expenditure when upgrading the countrys growth rate forecast from to 3.5 percent on June 23 from 2.4 percent on June 11.
The World Bank also stressed the inflation rate - at 9.7 percent in May - which was above the Central Bank's 5 percent goal, still posed some risks.
In his routine presentation to the Council of Ministers on June 2, Central Bank Governor Erdem Basci underlined that inflation is expected to peak in June and then start to abate from that point onward.
Turkeys inflation was expected to drop slightly during June, according to a panel of leading economists. Based on the average predictions of the economists, year-end inflation was forecast to be 8.09 percent, slightly lower than the 8.22 percent forecast in May.
According to a report released by Turkstat, the Consumer Price Index rose 9.16 percent compared to the same month last year - fifty points less than the country´s yearly inflation in May.
The highest monthly increase was in education, which rose 1.72 percent, while the largest decrease was in clothing and footwear which fell by 1.25 percent.
The Producer Price Index (PPI), which measures the selling prices of domestically produced goods and services, increased 0.06 percent. Annual inflation in June was 9.75 percent in PPI.
The Turkey´s Central Bank expects that foreign demand and net exports growth will support disinflation in the country and will lead to a significant improvement in the current account deficit in 2014.
The bank, at its June 22 meeting, reduced its one-week repurchase rate from 9.50 percent to 8.75 percent and left the borrowing rate unchanged on Thursday for the second time since it was hiked to protect the lira on January 28.
On Tuesday, the bank said in the meeting minutes that pricing behavior needs to be closely monitored with the cumulative impact of food inflation, the exchange rate figure reaching annual headline inflation of around 6.5 percentage points and the effects of ongoing high inflation rates.
The World Bank pointed to Turkey's high exports and sustained government expenditure when upgrading the countrys growth rate forecast from to 3.5 percent on June 23 from 2.4 percent on June 11.
The World Bank also stressed the inflation rate - at 9.7 percent in May - which was above the Central Bank's 5 percent goal, still posed some risks.
In his routine presentation to the Council of Ministers on June 2, Central Bank Governor Erdem Basci underlined that inflation is expected to peak in June and then start to abate from that point onward.
Turkeys inflation was expected to drop slightly during June, according to a panel of leading economists. Based on the average predictions of the economists, year-end inflation was forecast to be 8.09 percent, slightly lower than the 8.22 percent forecast in May.
