Turkish CPI for March on target
ISTANBUL (Reuters) – Annual Turkish inflation is expected to be within the central bank’s target range in March despite cigarette price hikes, a Reuters poll showed yesterday. According to the poll of 19 analysts, the consumer price index (CPI) is expected to rise 0.96 percent month-on-month in March. The producer price index (PPI) is seen up 1.03 percent on the month. The central bank sets quarterly target ranges for inflation in line with its end-year target of 4 percent annual inflation. The center of the target range in March is 9.2 percent, with an upper limit of 11.2 percent. «According to our calculations, inflation will not exceed the target ceiling, providing that month-on-month inflation does not exceed 1.22 percent,» said Oyak Bank economist Sengul Sonek. Inflation exceeded the upper end of the target range in the first two months of the year. When inflation falls outside the target range, the central bank is required to explain why in a letter to the government and the International Monetary Fund, with which Turkey has a multibillion-dollar loan accord.
