Turkey's recent gas price hike to raise inflation 0.2 pct

"The price regulation made to natural gas prices in November will affect inflation by nearly 0.2 percent," the central bank said in a statement.

 

Turkey announced at the weekend that natural gas prices for households and industry would rise by some 22 percent from the start of November.

The country's inflation is expected to decline gradually in the coming period if the positive outlook continues, the bank also said.

"The increase in inflation is basically due to the temporary hikes in vegetable prices," the central bank said, adding that inflation was expected to decline gradually if the positive outlook on oil and food prices continues.

The decline in oil prices have affected fuel prices positively, however the prices hikes of electricity, natural gas and solid fuel kept the energy group's annual inflation rate high, the statement also said.

 

The consumer price index (CPI) rose 2.6 percent, as the producer price index (PPI) increased 0.57 percent in October, the Turkish Statistical Institute (TURKSTAT) announced on Monday.

 

According to the figures, the consumer price index hit 11.99 percent on a 12-month basis, while the producer price index rate over 12 months rose to 13.29 percent.