Turkish April inflation comes in at 1.34% m/m, exceeds expectations.

By bne IntelliNews May 5, 2014

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 (%)
  Weights m/m y/y
Headline 100 1,34 9,38
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
Housing, utilities 16,41 0,24 4,92
Furnishings, household equipment 7,52 1,57 8,84
Health 2,44 0,93 7,66
Transportation 15,54 -0,54 13,84
Communications 4,70 0,13 0,86
Recreation and culture 3,36 0,09 7,31
Education 2,26 0,97 10,37
Hotels, cafes and restaurants 6,58 0,76 12,48
Miscellaneous goods and services 4,28 -0,10 6,11
Source: tuik      

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