Turkey's producer prices above expectations

Turkey's consumer price index (CPI) recorded an increase of 0,34 percent and producer price index (PPI) 4,02 percent in June, according to the data released by Turkey's Statistics Institute. In the first six months of the year, CPI rose 4.88 percent while PPI increased 11,68 percent. Year-on-year CPI rose to 8.32 percent while year-on-year PPI increased to 4.97 percent. The unexpected rise in PPI is attributed to the increase in exchange rates. On the CPI front, the influence of keen contraction in domestic demand and fluctuations on exchange rates is expected to become evident in July. Following the Turkish Cabinet meeting today, the government spokesman Cemil Cicek said that June's inflation figures were not surprise for the government and they even came out just below their expectations. Cicek also said that the economic fluctuation is a temporary situation and the inflation may decline in long-term in accordance with the targets.