In the past nine years, Turkey has experienced remarkable disinflation (from an average of 70.4% in the period of 1993-2002 to single-digit rates) as well as a marked decline in the volatility of inflation. As a result of tight fiscal policies and prudent monetary policies, inflation has declined to single digit in 2004.
Turkey’s inflation rate, measured by the consumer price index, declined from an average of 70.4% in the period of 1993-2002 to 6.4% at the end of 2010, the lowest reading in over four decades (41 years). During the course of 2011, the CPI inflation rate increased from 6.4% in December 2010 to 10.45% in December 2011.
Over the course of the year, the largest upward contribution came from alcoholic beverages and tobacco. The highest increase was 18.50% in the index for alcoholic beverages and tobacco compared to the same month of the previous year. Miscellaneous goods and services (17.14%), transportation (12.22%), food and non-alcoholic beverages (12.21%), furnishings and household equipment (11.04%) were the other indices where high increases were realised.
In December 2011 within average prices of 445 items in the index, average prices of 73 items remained unchanged while average prices of 255 items increased and average prices of 117 items decreased.
CPI Inflation Rates Through 1993 to 2011
Annual and Monthly CPI Rates (2003-2011)
Monthly and Annual Inflatýon Rates In 2012
2012 |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
CPI |
Monthly |
0,56 |
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Annual |
10,61 |
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PPI |
Monthly |
0,38 |
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Annual |
11,13 |
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Annual CPI Inflation and Target
Inflation Targets and Realisations Through 2002 and 2011
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2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
Hedef |
35 |
20 |
12 |
8 |
5 |
4 |
4 |
7,5 |
6,5 |
5,5 |
5 |
Gerçekleşme |
29,7 |
18,4 |
9,3 |
7,7 |
9,7 |
8,4 |
10,1 |
6,5 |
6,4 |
10,5 |
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WPI and CPI Inflation Rates Through 1990 and 2011
The preparatory works on the new indices of inflation were completed in 2004. As of January 2005, the Turkish Statistical Institute started using an improved CPI (Consumer Price Index) calculation mechanism which employs an updated basket and relative weights of the goods and services. In parallel, WPI (Wholesale Price Index) was left and instead, a PPI (Producer Price Index) was introduced.
Annual CPI and PPI Inflation Rates Through 2005 and 2011
During the course of 2011, the PPI inflation rate increased from 8.87% in December 2010 to 13.33% in December 2011.
By far the largest upward pressure affecting the change in the PPI annual rate came from the industrial price indices. In December 2010, the highest increase was 13.92% in the industrial price indices compared to the same month of the previous year.
The other increases in PPI by sub divisions were in the industrial price indices for tobacco products (7.64%), for office accounting computing machinery (5.52%), for communication equipment (3.36%), for electricity and gas (2.66%), for basic metal industry (2.42%), for medical, precision, optical instruments (1.52%), for wood products (1.48%) and metallic minerals (1.39%).
On the other hand, the largest downward pressure affecting the change in the PPI came from wearing apparels (-0.77%), textile products (0.59%) and chemicals (-0,51%) compared to the previous month.
In December 2011 within average prices of 785 items in Producer Price index, average prices of 183 items remained unchanged while average prices of 357 items increased and average prices of 245 items decreased.
Annual and Monthly PPI Rates (2003-2011)
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