Food Is Not the Only Problem

TURKEY - Report 03 Sep 2014 by Murat Ucer

August CPI inflation came in at 0.1%, slightly above expectations, raising the 12-month rate to 9.5% from 9.3% in July (Table 1; Graph 1). A further increase in food inflation to 14.4% from 12.6% earlier, given last year’s low base, is partly to blame, but it is notable that neither the core inflation (I-index) nor non-food inflation eased much in August (Graphs 2-4). This alone suggests that the impact of food in Turkey’s inflation problem should not be overstated, which seems to be the dominant view in Ankara these days, based on what we hear from Deputy PM Babacan and the CBRT itself. Th...

Now read on...

Register to sample a report

Register