Turkey’s May inflation figures
Turkey's consumer price index (CPI) rose 0.92% in May, above estimates, and the producer price index increased (PPI) 0.2%, below estimates, according to data released by
Turkey's State Institute of Statistics (DIE).
Based on the May inflation figures, annual inflation figures were projected as 8.7% for CPI and 5.59% for PPI.
An 8.8% rise in clothing prices in May 2005 led to a higher-than-expected CPI. The clothing prices also saw a jump of 8.6% in April. Clothing prices were seasonally strong in the April-May period.
Meanwhile, increases in the core indices could be a negative indicator for future figures. The 1.5% increase in CPI excluding food and energy was higher than expected, as was the 1.7% rise in CPI excluding food, energy, alcoholic drinks and indirect taxes.
On the PPI front, the decline in prices of
manufacturing and petroleum products contributed to the lower PPI. On the other hand, agricultural prices posted a gain of 1.96%.
Economists believe that a further rate cut is on the agenda. The Central Bank of
Turkey could announce a rate cut of 50 basis points at its June meeting on Wednesday.