Turkey‘s annual consumer price inflation surged to an 8-1/2 year high of nearly 12 percent in April, official data showed on Wednesday, keeping pressure on the central bank to maintain tight monetary policy.
Consumer prices rose 11.87 percent from a year earlier for a 1.31 percent rise month-on-month, the Turkish Statistics Institute said. The rise was in line with a Reuters poll which forecasted an increase of 1.3 percent.
Last Friday, Turkey‘s central bank raised its inflation forecast for 2017 to 8.5 percent from 8 percent and said it was ready to tighten policy further if needed.
The inflation rise has been driven by sharp declines in the lira, although the Turkish currency has recouped this year’s losses against the dollar since April’s referendum on boosting President Tayyip Erdogan’s powers. The lira was flat at 3.53 against the dollar after Wednesday’s data.
In its first policy-setting meeting since the referendum, the central bank last Wednesday lifted its late liquidity window rate by 50 basis points to 12.25 percent in an attempt to rein in inflation.
April’s consumer price inflation was driven by food prices which rose 1.23 percent from a month earlier, while clothing and footwear prices climbed 9.13 percent. Annual consumer price inflation was at the highest level since October 2008.
Producer prices rose 16.37 percent year-on-year in April, and were up 0.76 percent month-on-month, the data showed.