Disinflation Illusion Continues

TURKEY - Report 03 May 2016 by Murat Ucer

Consumer price inflation surprised once again on the downside in April, coming in at a better than expected 0.8%, m/m, thanks to a very sharp fall in food inflation – the latter constituting the best April on record, since the new series began in 2003. Twelve-month CPI-inflation hence dropped further to 6.6%, from 7.5% in March, as food (and beverages) inflation practically collapsed to 1.4%, y/y, in April from 4.6% in March. Producer prices have also fallen to 2.9% from 3.8% (Table 1; Graphs 1-3).

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