Turkey's 'inflated' inflation

Turkey's growing inflation rate shows no signs of easing...

The inflation rate in January was 0.8 percent in the consumer price index (CPI) and 0.42 percent in the producer price index (PPI).

CPI inflation was 1.76 percent points higher last year in January while PPI inflation was 2.93 points higher. The latest increases take the year on year consumer inflation rate to 8.61 percent and the wholesale rate to 6.08 percent.

Inan Demir, economist at Finansbank, noted: “Given this more cautious stance, the likelihood that the easing process will be put hold in the next meeting has increased significantly and we revise our year-end policy rate forecast to 14.5 percent from 14 percent”.