Weak Economy Ain’t No Fix For Inflation
Consumer prices rose by a higher than expected 0.8% in February, raising the 12-month rate to 10.1%, up from 9.2% in January. The increase was broad-based with several categories seeing price increases higher than the same period of last year. Producer prices, reflecting the simultaneous cost-push pressures from higher energy prices and a weaker lira shot up sharply further to 15.4%, from 13.7% in January (Table 1; Graphs 1-2). Underlying inflation indicators have either worsened markedly (core and non-food) or remained elevated (services), despite the relative weakness in the economy (Table 2; Graphs 3-5).
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