Turkey inflation soars on food price hike
Istanbul, January 4, 2014
Turkish inflation accelerated slightly more than forecast in December on the back of food price rises, official data showed, nudging annual inflation up to a higher-than-expected 7.4 per cent.
Inflation has been driven higher in recent months by the weakness of the lira and higher-than-expected global oil prices, prompting the central bank in October to raise its inflation forecasts for the full year.
Turkey has an official 5 per cent inflation target and a most recent central bank forecast of 6.8 per cent for 2013.
Turkish consumer prices rose 0.46 per cent month-on-month in December, just above a Reuters poll forecast of a 0.4 per cent rise, the Turkish Statistics Institute said. Consumer prices had been flat in November.
Food prices rose 1.46 per cent on the month.-Reuters