Turkey’s annual CPI jumps to 10.74 percent
Posted by meb at June 3rd, 2008
Consumer price index (CPI) rose 1.49 percent, and the producer price index (PPI) climbed 2.12 percent in May, the Turkish Statistical Institute (TURKSTAT) said on Tuesday.
Turkish consumer prices hit 10.74 percent on a 12-month basis, the Turkish Statistics Institute said Tuesday.
Producer or factory gate prices rose 2.12 percent from April to May, bringing the wholesale inflation rate over 12 months to 16.53 percent, it said.
Inflation was highly expected to rise and reach the double-digit rate in the surveys prior to figures.
Higher global commodity prices are driving inflation in Turkey, which imports 95 percent of its natural gas and oil. The Central Bank, which raised its benchmark interest rate last month for the first time since 2006, said on May 28 that it is ready to continue raising rates in a “measured” way to counter the risk of rising inflation caused by high oil and food prices.
“The chances of higher inflation in the short term are increasing because of uncertainty in the global economy, and because of energy prices,” the Central Bank said. “The Monetary Policy Committee stands ready to raise interest rates in a measured fashion if necessary.”
Turkey’s economy grew 3.4 percent in the fourth quarter, the slowest pace in more than five years. Inflation may also be stoked by utility costs over the next few months. The government raised household gas prices by 7.4 percent Sunday. The price increases are aimed at covering losses by state-run energy companies following the jump in commodity prices.
source: Hurriyet
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