Turkish C.Bank expects inflation to drop in next months

Turkey's Central Bank has said the 2010 annual inflation turned out compatible with the targets for this year.

Turkish C.Bank expects inflation to drop in next months

Turkey's Central Bank has said the 2010 annual inflation turned out compatible with the targets for this year, noting that inflation would continue to drop in the months to come.

Central Bank made an assessment of the 2010 inflation figures announced by TurkStat-Turkey's statistics authority- in a statement on Tuesday.

The bank said the 6.4% of annual inflation was slightly below its target of 6.5%.

"The inflation is expected to continue to drop, and the core inflation to continue to show a slight annual rise," the Central Bank said.

It said the Consumer Prices Index (CPI) dropped 0.3% in December and 0.89% on overall in 2010, noting that the downward revision of unprocessed food prices has been effective in the decline in inflation.

It said though the prices of basic goods and services rose slightly, it hovered around levels compatible with medium term program goals.

TurkStat, on Monday, announced that CPI in Turkey surged to 6.4% year-on-year in December.

TurkStat figures showed that the Producer Prices Index (PPI) climbed 8.87% in December. CPI declined 0.3% month on-month while PPI rose 1.31% in December.

Based on monthly averages the CPI rose 8.57% year-on-year while PPI rose 8.52%.

The highest year-on-year surge was 24.66% in the price index for alcoholic beverages and tobacco. "Restaurants and hotel prices" followed with 9.76%, which was followed by price index for "food and non-alcoholic beverages" with a surge of 7.02%.

PPI in the agricultural sector rose 14.52% in December. The PPI in in the industry sector rose 7.7% year-on-year.


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Last Mod: 04 Ocak 2011, 17:09
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