Turkey missed its year-end inflation target, as consumer price index increased by 7.4 percent through the past year, coming in above the government’s 6.8 percent objective.
Turkey missed its year-end inflation target, as consumer price index increased by 7.4 percent through the past year, coming in above the government’s 6.8 percent objective.
The consumer price index in the country increased 0.46 percent in December on a monthly basis, driven by the higher-than-expected rise in food prices and LPG hikes, according to data announced by the Turkish Statistical Institute (TÜİK).
With the announcement of the data, it has been revealed that the economy management in the country failed to hit their target of 6.8 percent, which was already revised upwards in November.
The Central Bank, as expected, had forecasted the inflation to edge up to 6.8 percent at the end of 2013, and 5.3 percent at the end of 2014, at higher levels than its previous forecasts of 6.2 and 5 percent respectively.
The Turkish inflation proceeds above expectations, particularly as of the second quarter, mainly due to the devaluation of the Turkish Lira, which was hit harshly when the United States’ central bank Federal Reserve signaled it may taper off its monetary easing.
The Turkish Central Bank was following a roadmap, which appears to be focusing on making the bank’s policies as gradually predictable as possible, with the aim of reducing global incidents’ impact on inflation.
Hurriyet Daily New