Turkish inflation remains steady through February

ISTANBUL - Hürriyet Daily News

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Turkey’s inflation for February rose by 0.3 percent from the previous month, slightly below the market expectations, but sector players say the long-term risks of inflation are likely to remain.

The 12-month average inflation rate amounted to 8.33 percent as of February, official data released today by Turkish Statistics Institute (TÜİK) showed. The year-on-year figure moved up to 7.03 percent.

“We approach these figure cautiously, since the core inflation figures remain at their previous levels, indicating that the risks of inflation continue,” Ali Çakıroğlu, HSBC portfolio strategist, told Anatolia news agency.

The highest monthly increase was 1.63 percent in transportation, but the prices of alcoholic beverages and tobacco products increased most on an annual basis with a 16.31 percent hike.

Inflation might fall below 6.5 percent in April, but it will fluctuate between 6.5 and 7.5 percent throughout the rest of the year, said Gizem Öztok Altınsaç, an economist at Garanti Investment.

She said she expected 6.8 percent for the year-end and said the outlook may be changed only if the extraordinary increases in food prices ease off.

The economists blame rising food prices for the increase in inflation and expect the prices to continue their surging trend.