Türkiye closed 2006 with annual inflation at 9.65%, nearly twice the 5% target set under its IMF-backed economic program, according to the Turkish statistics institute. Consumer prices edged up 0.23% in December alone.
The full-year figure nonetheless came in below the 9.96% average forecast compiled by the Central Bank from a survey of roughly 70 economists, bankers, and business executives. Producer price inflation ran higher, reaching 11.58% for the year after a slight monthly dip in December.
Inflation had been climbing since early 2006, driven by rising global oil costs and a weakening of the Turkish lira tied to domestic political uncertainty and capital outflows from emerging markets worldwide.
Despite missing the 2006 goal, Turkish authorities expressed confidence that the 4% inflation target for 2007 is achievable if tight monetary policy is maintained. Controlling inflation is central to a three-year stabilization program backed by a 10-billion-dollar IMF loan. That partnership had previously helped Türkiye bring inflation down sharply, from 29.7% in 2002 to 7.7% in 2005.
Historical summary. TurkishPress restated this wire report, first published in January 2007, in its own words.