World Bulletin / News Desk
Annualized consumer inflation saw a mild rebound to nearly 9 percent in June, indicating that meeting the year-end target of 5 percent will be a difficult task for the Central Bank of Turkey, even as crude prices remained much lower for the sixth month than they were at the beginning of the year.
The Turkish Statistics Institute (TurkStat) announced the monthly inflation figures on Tuesday.
According to its data, the Consumer Price Index (CPI) actually decreased by 0.9 percent from May to June, but was 8.87 percent higher than in the same month a year ago, representing a minor increase in the annualized rate, which was 8.2 percent a month earlier.
Among consumer goods in June, non-alcoholic beverages (3.42 percent), transportation (1.39 percent) and clothing and shoes (0.82 percent) saw a price reduction. At the other end of the scale, communication prices took the lead with a 1.92 percent hike in the sixth month over the fifth.
The June Producer Price Index (PPI) likewise dropped by 1.49 percent compared to May, and was 6.44 percent higher year-on-year. The annualized increase in PPI was 8.06 percent in May. Production costs increased for communication equipment (2.97 percent), potable water (2.13 percent) and furniture (1.89 percent) in June over May. Producers, however, paid notably fewer input cost in the fields of crude oil and natural gas extraction (8.63 percent), charcoal and refined petroleum products (7.04 percent).
Inflation in Turkey is dependent on multiple variables, but among them energy prices are generally game-changers. A barrel of crude was at nearly $80 for the month of June, compared to some $100 in January.
The major factor behind Turkey's intractably high consumer inflation is the rapid expansion of the gross domestic product (GDP) for the past decade. The national economy expanded by 5.4 percent on average each year between 2002 and 2011. Last year's 8.5 percent GDP growth, on top of the 8.9 percent increase recorded a year earlier, made Turkey the fastest-growing economy in all of Europe and within the larger Organization for Economic Cooperation and Development (OECD). For the first quarter of this year, however, the economic growth rate slowed to 3.2 percent, extending a helping hand to the policymakers as they try to beat inflation.
Central Bank Governor Erdem Başçı had predicted in April that people would see decreasing inflation in the country in the second half of 2012, and that the pace of decline would peak particularly in the last three months of the year.
HDP withdraws from parliamentary commission investigating four former Turkish ministers over graft allegations
Applauds request by Turkey to have group of Uighur discovered in Thai border camp in March relocated to Ankara
Media organizations not allowed to broadcast work of parliamentary investigating commission until Dec. 27
Erdogan says Muslim world should unite to put an end to the crises in Middle East.
The Supreme Military Council (YAS) will meet with Prime Minister Davutoglu and for the first time Erdogan will sign the YAS decisions as President
Mevlut Casvusoglu held phone conversations with Kurdistan Regional Government’s Prime Minister Nechirvan Barzani and Iraqi Foreign Minister Ibrahim al-Jafari
Turkish dailies on Thursday cover Turkey’s president’s remarks on the ongoing Kurdish 'solution process' and have reported on a hearing into the death of a protester injured during the 2013 Gezi Park protests.
Palestine recognizes Turkish President Recep Tayyip Erdogan’s efforts to resolve the Palestine issue, says Deputy Speaker of the Palestinian parliament.
The consumer confidence index in Turkey has dropped for the second consecutive month in November, Turkish Statistical Institute has said in a new report
Number of suspects for murder of Serbian basketball fan rises to seven.
Russia and Turkey will continue to boost bilateral relations at the highest level despite differences over Ukraine, says Russia’s ambassador to Turkey.
The organized industrial zone will be established in the city of Jenin in the West Bank
A new political party called the Electronic Democracy Party, or e-Party, has emerged in Turkey weeks before the country enters election year in 2015.
Turkish president restates that "What women need is to be equally respected, rather than equal"
Turkish FM says Turkey wants to host nearly 300 Uighurs, who were found at a human smuggling camp in Thailand in March
Three dismissed executives of Turkey's Star Media Group reject as 'slander,' the accusations made against them by an 'abuse campaign'