Turkish inflation climbs more than estimated in April

Turkish inflation climbs more than estimated in April

Turkish inflation climbs more than estimated in April

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Consumer price inflation in Turkey rose more than expected last month, according to official data released by the Turkish Statistical Institute (TÜİK) on May 4. 

The Consumer Price Index rose 1.63 percent from March, pushing the annual rate of inflation to 7.91 percent in April from 7.61 in March, according to a statement from the TÜİK. 

The highest annual increase was 14.36 percent in food and non-alcoholic beverages, followed by hotels, cafes and restaurants with 13.34 percent, miscellaneous goods and services with 9.90 percent, housing with 8.21 percent and education with 7.88 percent. The domestic producer price index also suffered, registering an increase of 1.43 percent on a monthly basis, according to the TÜİK data. 

Food has been named as the chief driver of the inflation rate by Central Bank Governor Erdem Başçı. 

“Rising food prices put a restraint on disinflation. In this period, oil prices and Turkish Lira-denominated import prices led to cost pressures on inflation. With accommodative weather conditions and possible policy measures, food inflation may have ample room to decline,” Başçı said on April 30, as quoted by Anadolu Agency. 

He also noted core inflation had been declining for the first quarter of the year. However, core inflation is now up 2.03 percent, according to the TÜİK. 

In its April 30 report, the Central Bank made a revision to its year-end inflation forecast to 6.8 percent, from 5.5 percent.