Turkey's C.Bank announces inflation estimate

Turkey's Central Bank announced that it expected the annual inflation rate for 2010 to be 8.4%.

Turkey's C.Bank announces inflation estimate

Turkey's Central Bank (CB) announced that it expected the annual inflation rate for 2010 to be 8.4%.

CB Governor Durmus Yilmaz who announced the Inflation Report --an assessment of Q1-- with a press conference Thursday, said CB raised its annual CPI expectation to 8.4%.

He said they expected annual CPI in 2011 to be 5.4% and 5.0% in 2012.

Durmus said the tax hikes over fuel oil, alcoholic beverages and tobacco products along with the soaring unprocessed food prices has been effective in the rise in inflation. He said in this respect that CPI index in Q1 of 2010 rose 3 points over Q4 of 2009 and reached 9.56%.

Durmus said the unprocessed food prices recorded the highest rate of hike in history in Q1 of 2010. He said the soaring meat prices, due to the scarcity in supply of livestock have been effective, pushed both unprocessed and processed food prices upwards. He said as of March the contribution of meat prices to annual inflation have been 1.67%.

Durmus said the energy prices also rose considerably in Q1 of 2010 due to the tax hikes, estimating that it would continue to rise in Q2.

He said the overall contribution of tax hikes, soaring energy and food prices to annual inflation have reached 6.7%.

Durmus said given such circumstances, the gap between projections and targets grew, in an attempt to explain the reason of their revision of inflation targets.

Durmus pointed out that Q1 figures showed domestic demand was gradually picking up and expanding, and industrial manufacturing was picking up.

He said however that foreign demand was still low which restricted the economic activity and impeded recovery in sectors dependent on exports. He said as a result of the low rates of capacity utilisation in export dependent sectors, relative recovery in employment figures in the second half of 2009 would not continue, and high levels of unemployment would continue for longer periods of time.


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Last Mod: 29 Nisan 2010, 14:34
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