Thursday, January 3, 2008

Turkish Inflation double the government's target

The Turkish Central bank need to develop a core inflation indicator to hide their rising inflation. Again, we hear the same tired old excuses - "food prices, oil, drought".

Turkish consumer prices rose 0.22 pct in December from November to reach 8.39 pct on a 12-month basis, more than double the government's target, the Turkish Statistics Institute said.

It was the second year in a row Turkey missed its year-end inflation target under an economic recovery programme backed by the International Monetary Fund (IMF).

Producer prices climbed by 0.15 pct from November to December for a total increase of 5.94 pct in 2007, the institute said.

The Central Bank has blamed higher oil prices and a long-lasting drought for the figure and warned last month planned electricity, natural gas and food prices rises would continue to pose risks.