ANKARA, Feb 3 (AFP) - Turkish consumer prices rose by 0.55 percent in January from the previous month and by 9.23 percent on an annual basis, the state statistics institute said Thursday.
The institute said producers' prices -- which have replaced the wholesale prices index -- decreased by 0.41 percent in January from December, but increased by 10.70 percent over a year.
Last year, Turkey reduced inflation to 9.32 percent, beating a year-end target of 12 percent set in an economic recovery programme backed by a 16-billion-dollar credit line from the International Monetary Fund (IMF).
The three-year stand-by deal, which began in 2002 in the wake of two severe financial crises, is set to expire in February.
In December, Turkey and IMF officials reached agreement on a new three-year arrangement worth 10 billion dollars to bolster economic recovery.
Cutting inflation will also be a backbone of the new programme, which is expected to be approved by the Fund's executive board one Turkey passes a number of IMF-demanded reforms.
Under the new programme, Turkey is aiming to bring inflation down to eight percent in 2005, five percent in 2006 and four percent in 2007.
02/03/2005 15:10 GMT - AFP