Turkish inflation rate rises less than analysts expected

ANKARA

Consumer price inflation in Turkey rose less than analysts had forecast in February, the Turkish Statistical Institute said in a statement on Tuesday.

The Turkish Consumer Price Index  rose 0.71 percent  from 1.10 percent in the preceding month. The annual rate of inflation was 7.55 percent, the statement said.

Analysts had forecast a rise of 0.75 percent last month.

The annual rate of inflation is at 7.55 percent, the statement said. 

The highest monthly increase was 2.59 percent in food and non-alcoholic beverages. In February 2015, the indices rose for transportation 1.77 percent, for hotels, cafes and restaurants 1.06 percent, for communications 0.94 percent and for health 0.82 percent.

The highest monthly decrease was observed at 6.58 percent in clothing and footwear. In February 2015, the indices declined for alcoholic beverages and tobacco 0.44 percent and for education 0.08 percent.

Turkey's Medium Term Economic Program forecasts  inflation at 6.3 percent at the end of this year, and the government targets 5 percent inflation in the consecutive years of 2016 and 2017.

Some analysts agreed that these targets may still be achieved.

"We expect a sharp decline in inflation next month, probably below 7 percent," commented Bora Tamer Yilmaz, an economist at Ziraat Securities in Istanbul.

"Core inflation -- which is calculated by taking the Consumer Price Index and excluding energy and food products -- dropped to 7.73 percent in February from 8.63 in January due to low petrol prices," Hilmi Yavuz, an economist at Garanti Yatirim pointed out. Yavuz agreed in forecasting a drop to below 7 percent next month.