Turkısh March Cpı +0.58% On Month, Ppı +1.94%

The most recent survey from Turkey's central bank showed that the consumer price index was expected to rise 0.69% on the month in March.

The data from the Turkish Statistics Institute, or TUIK, also showed producer prices rose 1.94% on the month in March.

In annual terms, consumer prices rose 9.56%producer prices increased 8.58%.

The central bank's market survey, conducted March 22, forecast that the Turkish consumer price index is likely to rise 8.06% on the year by the end of 2010.

The bank forecasts an annual inflation rate of between 5.5%8.3% in 2010, with a 70% probabilitya mid-point of 6.9%.

"The increase in the consumer price index is in line with market expectations," said Gulizar Turk, an analyst at Anadolu Yatirim.

Producer prices increased above market expectations, but it won't have so much impact on the market, she said.

Turk doesn't expect the Turkish central bank to change interest rates at its next monetary policy meeting.

On March 18, the central bank left its key overnight borrowing rate at 6.5%its overnight lending rate at 9%, in line with general market expectations.

It cut its benchmark-borrowing rate 13 consecutive times to 6.5% from 16.75% between October 2008November 2009.

"I expect the rate of inflation to rise to between 7.5%8% on the year in 2010," she said.