Annual inflation back to two digits in April after one month

Turkey’s annual inflation reached the double-digit mark in April, increasing to 10.19 »»
Turkey’s annual inflation reached the double-digit mark in April, increasing to 10.19 percent from March’s inflation rate of 9.56 percent, data released by the Turkish Statistics Institute (TurkStat) on Monday have shown.

TurkStat announced on Monday that consumer prices jumped by 0.6 percent and producer prices by 2.35 percent in April over the preceding month. The inflation report revealed that the annual inflation as of April was 10.19 percent in consumer prices and 10.42 percent in producer prices.

Onions experienced the highest monthly increase in price with a 47.08 percent rise in April over the preceding month.

The Central Bank of Turkey had earlier warned that inflation was not expected to decrease significantly until the last months of the year owing to the base effect. The recent fluctuation in Turkish food and energy markets was the major factor that drove inflation rates higher in the first quarter, and such an effect is expected to continue during the following few months. The bank revised its inflation expectation upwards to a midpoint of 8.4 percent at the end of 2010.

The 12-month moving average inflation rate was 6.87 percent for the consumer price index (CPI) and 2.52 percent for the producer price index (PPI).

April saw the highest monthly increase in the CPI for clothing and footwear -- 10.58 percent over the previous month.

A report recently released by the Confederation of Turkish Labor Unions (Türk-İş) found that the monthly salary necessary to adequately feed a family of four, referred to as the hunger line, was TL 852.50 in April. The minimum wage in Turkey currently stands at TL 576. The consumer price indices rose for hotels, cafes and restaurants by 1.16 percent; for health 0.93 percent; for furnishings and household equipment 0.6 percent; for food and non-alcoholic beverages 0.14 percent; for housing 0.12 percent; for transportation 0.05 percent; for alcoholic beverages and tobacco 0.02 percent. The index declined for miscellaneous goods and services by 0.05 percent; for education by 0.09 percent; for recreation and culture by 0.48 percent and for communication by 4.83 percent. The highest year-on-year rise was seen in the CPI for alcoholic beverages and tobacco -- 43.03 percent in April of this year compared to the same month of the previous year. Transportation followed with 14.72 percent while the CPI for food and non-alcoholic beverages saw the third highest annual increase with 11.76 percent in April over the fourth month of 2009.

The agriculture sector saw a 0.83 percent rise in the PPI in April over the previous month, while the industrial sector saw a 0.1 percent increase. The PPI in the agriculture sector increased by 29.9 percent in April compared to the same month of 2009. The industrial sector saw a 6.47 percent rise in the PPI in the same period. The highest monthly increase in the PPI of industrial activities was recorded as 8.98 percent in the index for the manufacturing of office machines. The manufacturing sector saw a 0.92 percent monthly increase in its PPI, while the mining sector index increased by 0.38 percent and the utilities index increased by 0.19 percent in April compared to the previous month.

2010-05-04

Business