Turkish Inflation Rose for a Seventh Month Amid Lira Slide
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Turkish inflation accelerated for a seventh month in April as a weak lira and rising global energy prices compounded the impact of a low base a year earlier.
Annual inflation climbed to 17.1% from 16.2% the previous month, slightly below the median estimate of 17.3% in a Bloomberg survey of 21 analysts. Prices rose 1.7% from March.
- Energy prices rose 18.4% on the year, compared with 12.4% in March, on higher oil prices, raising the odds of further spillover into other goods and services inflation
- A core inflation index showed prices excluding volatile items such as food and energy also rose an annual 17.8% through April, up from 16.9% in March, a sign of strong inflationary pressures underlying the headline figure
- Food prices, which account for roughly one-fourth of the consumer basket, rose 17%, compared with 17.4% the previous month. It still remains well above the central bank’s interim target of 13% set for the year’s end
- The lira was little changed after the data was released, trading 0.24% lower at 8.3151 per dollar at 10:03 a.m. in Istanbul
- Producer prices rose an annual 35.2% through last month
- Retail prices in Istanbul, Turkey’s business capital, climbed in April as clothing and housing costs continued to rise amid a weakening lira
- The central bank is expected to leave its benchmark interest rate unchanged for a second time at its next rate-setting meeting on May 6
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