Consumer prices rose 1.34% m/m in April versus the market consensus forecast of 0.88% m/m. Annual inflation, consequently, accelerated to 9.38% in April from 8.39% in the previous month. April’s annual CPI inflation figure is the highest since April 2012 when inflation rate stood at 11.14% y/y.
Food prices rose 1.42% (annual rise: 13.15%) in April, adding 0.32 percentage points to the headline inflation, data of the statistics institute TUIK showed on Monday. Alcoholic beverages & tobacco prices increased only 0.02% m/m but the rise in clothing prices was 13.10% m/m adding another 0.86 percentage points to the April inflation. Communication prices increased 0.13% m/m while transportation costs fell 0.54% m/m in the month.
Core inflation, measured by one of the Central Bank’s favourite I-index, showed a 2.12% m/m increase, after rising 1.2% m/m in March. The annual increase in the I-index quickened to 9.74% in April from 9.32% in the previous month. The I-index excludes the prices of energy, food and non-alcoholic beverages, alcoholic beverages and tobacco products and gold.
Domestic producer prices that increased 0.74 in March rose 0.09% m/m in April, TUIK also said. Annual domestic producer price inflation accelerated to 12.98% from 12.31% in March.
The Central Bank, that raised its 2014 inflation forecast to 7.6% from a previous 6.6%, expects inflation to peak in May. The Bank’s official inflation target for 2014 is 5%.
|March CPI by Main Expenditure Groups (%)|
|Food and non-alcoholic beverages||24,45||1,42||13,15|
|Alcoholic beverages and tobacco||5,29||0,02||3,13|
|Clothing and footwear||7,17||13,10||7,63|
|Furnishings, household equipment||7,52||1,57||8,84|
|Recreation and culture||3,36||0,09||7,31|
|Hotels, cafes and restaurants||6,58||0,76||12,48|
|Miscellaneous goods and services||4,28||-0,10||6,11|
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