Turkey's inflation rates again on the decline

Turkey’s inflation rates again on the decline

According to the data released by the State Institute of Statistics (DIE), wholesale price index (WPI) rose by 0.75% month-on-month in November and consumer price index (CPI) increased by 1.54% month-on-month. Accordingly, the year-on-year WPI declined to 14.4% while the year-on-year CPI regressed to 9.79%. The seasonal increases in food and apparel prices were effective on the CPI front while the slowdown in agricultural prices and the modest rise of 0.4% in manufacturing sector due to the decline in exchange rates were dominant on the WPI front. In November, public sector manufacturing prices rose by 1.2% due to crude oil and natural gas prices and private sector manufacturing prices, regarded as the core inflation, increased by 0.2% month-on-month and declined from its previous level of 1.4%, mainly due to price cuts in base metal, paper and communication sectors. The price increase should stay at 1% in December in order to achieve the 10% increase targeted for 2004 annual CPI. In WPI, the revised target, which was surged to 13.5%, has already been exceeded.