Rising world oil prices were the main driver pushing the Turkish wholesale price index (WPI) growth above expectations, analysts said on Sunday, but added the country was still on track for a year-end IMF-backed target.
September WPI rose 1.85 percent month-on-month for an annual rise of 12.5 percent, the State Statistics Institute (DIE) said. A Reuters poll of 22 banks had predicted the monthly rise would be 1.3 percent.
The consumer price index (CPI) came in lower than market expectations, rising 0.94 percent month-on-month in September for an annual rise of nine percent, DIE said.
The median forecast in the Reuters poll was for a 1.65 percent rise in CPI in September.
"Rising energy prices appear to have driven wholesale prices. But the central bank was expecting this and has said that if oil prices remain high, consumer price inflation could be affected next year," said Simon Quijano-Evans, analyst at HVB Group in Vienna.
Turkey targets 12 percent CPI and WPI by year-end under its $19 billion loan accord with the International Monetary Fund.
"The bottom line is the 12 percent target is still well within reach," Quijano-Evans said.
Core inflation, or private sector manufacturing prices, rose 0.6 percent in September, against an expectation of 1.26 percent. Core inflation is considered an important early indicator for WPI in the subsequent month.
Ahead of the data, analysts said they saw seasonal factors pushing inflation higher in September.
The September figures leave room for another central bank rate cut this year by an expected 200 basis points, analysts said.
The bank last cut key rates on September 8, lowering the overnight borrowing rate to 20 percent from 22 percent and the overnight lending rate to 24 percent from 27 percent.
Comments
Comments are closed.