Turkey's inflation drops to 7.7 pct

Bloomberg

The inflation rate fell to 7.7 percent from 9.5 percent the month before, the statistics office in Ankara said yesterday. In the month, prices fell 0.3 percent.

The central bank has cut the benchmark interest rate by 5.25 percentage points in the last four months, joining monetary authorities across the world in lowering the cost of borrowing to avert recession. Inflation is likely to ease faster than forecast, the bank said on Feb. 19, when it reduced the rate to 11.5 percent.

The cost of goods leaving Turkish factories and mines rose an annual 6.4 percent in February, compared with 7.9 percent the previous month, the statistics agency said. Producer prices rose 1.2 percent in the month.