Turkish inflation rate rises to record levels
Higher-than-expected inflation in April makes it harder for Turkey’s Central Bank to lower interest rates as the government wishes, rekindling a long-standing controversy in the country.
Turkey’s April inflation figures, announced on May 5, broke records. Consumer inflation rose to 9.38% from April 2013, while core inflation climbed to 10.05%.
What are the figures telling us?
Consumer inflation was the highest since April 2012, while core inflation the highest since 2008.
Core inflation is considered to be the real inflation because it is stripped from seasonal and external effects, reflecting the price hikes in the private manufacturing industry. Hence, the rise in core inflation indicates a deteriorating inflation outlook, with price increases poised to spill over.
