World Bulletin/News Desk
Consumer prices in Turkey rose less than analysts had expected in November, according to official data released Wednesday.
The consumer price index was up 0.18 percent in November compared with 9.15 percent during the same month last year, the Turkish Statistical Institute said.
"The 12-month moving average inflation stood at 8.8 percent in November 2014," according to Turkstat.
Enver Erkan, a research analyst at ALB Security, a leading brokerage firm in Turkey, said the reading was lower than the market's expectations.
“Higher inflation, which stood at 9.15 percent in November, continues because of high food prices, clothing and footwear,” Erkan said.
Analysts, however, expect lower oil prices to reduce inflation in the coming months.
“In December, declining oil prices will affect inflation rates positively, but food inflation may limit the overall improvement,” Erkan said.
Central Bank Governor Erdem Basci said in October that inflation would reach 8.9 percent in 2014, which is 1.3 percent higher than the central bank's previous estimate of 7.6 percent. He said the rise was mainly caused by high food prices, due to the lack of rain.
Basci estimated the 2015 annual inflation rate would be between 4.6 and 7.6 percent, with an exact figure closer to 6.1 percent.
The inflation rate is one of the main reasons Turkey's central bank left its benchmark interest rate at 8.25 percent for a fourth month in a row in November.
Interest rates are a matter of debate in Turkey, with government officials repeatedly criticizing the central bank's policies as limiting economic growth.
The central bank is insisting on maintaining high interest rates until it sees clear signs of improvement in the inflation outlook.
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