Turkish March inflation comes in at 1.13% m/m, above expectations.

By bne IntelliNews April 3, 2014

Consumer prices rose 1.13% m/m in March, the statistics institute TUIK announced on Thursday. This is well above the market consensus forecast of 0.85% m/m. CPI inflation was 0.43% m/m in February.

Annual inflation, consequently, quickened to 8.39% in March from 7.89% in February. Food prices were up 2.1% m/m (10.12% y/y) in the month, adding 0.51 points to the headline inflation. Food inflation was 0.13% m/m in February. Clothing prices rose 2.49% m/m, adding another 0.18ppt to the headline inflation. Transportation costs increased 0.88% m/m in the month, leading to an annual inflation of 13.74% for this item. Automobile prices rose 4.47% m/m, data of TUIK also showed.

All major core inflation indexes showed noticeable increases in March. One of the Central Bank’s favourite core inflation indicators, the so-called I-Index (which excluded the prices of energy, food and non-alcoholic beverages, alcoholic beverages and tobacco products and gold) rose 1.2% m/m (9.32 y/y).

TUIK data also showed that the rate of increase in domestic producer prices eased to 0.74% m/m in March from 1.38% m/m in February. The annual inflation in producer prices decelerated to 12.31% from 12.4%.

On the back of March data, the annual inflation remained above the government’s 2014 target of 5%. The Central Bank already said it did not expect any decline in inflation until June, underlining upward risks on the inflation outlook, and lagged impact of the exchange pass-through on core inflation.

March CPI by Main Expenditure Groups (%)
  Weights m/m y/y
Headline 100 1.13 8.39
Food and non-alcoholic beverages 24.45 2.10 10.12
Alcoholic beverages and tobacco 5.29 -0.02 3.10
Clothing and footwear 7.17 2.49 7.30
Housing, utilities 16.41 0.23 4.84
Furnishings, household equipment 7.52 0.90 7.64
Health 2.44 0.85 7.02
Transportation 15.54 0.88 13.74
Communications 4.70 0.27 0.88
Recreation and culture 3.36 0.68 7.97
Education 2.26 0.19 9.98
Hotels, cafes and restaurants 6.58 1.33 12.51
Miscellaneous goods and services 4.28 1.20 5.27
Source: tuik      

Related Articles

Turkish exporters' association chief dismisses benefits of fast depreciating lira

The fast depreciation that has afflicted the Turkish lira in recent weeks does not bode well for the Turkish economy and the central bank should be more proactive in combating it when necessary, ... more

Turkish central bank releases $500mn of liquidity via new deposit swaps market

The Turkish central bank on January 18 provided around $500mn of liquidity with a maturity of one-week to Turkish lenders at the first auction held under the scope of the newly launched FX ... more

Turkish prosecutors demand lifetime jail sentences for leaders of pro-Kurdish HDP

Turkish prosecutors have demanded up to a 143-year jail sentence for Selahattin Demirtas, co-leader of the pro-Kurdish HDP, party and 83 years for the other co-leader, Figen Yuksekdag, ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss