Update: Turkısh June Cpı +8.37% On Year; Ppı +7.64%
The Turkish consumer price index fell 0.56% on the month in June, data from the Turkish Statistics Institute, or TUIK, showed Monday.
The most recent survey from Turkey's central bank showed that the CPI was expected to rise 0.12% on the month in June.
The TUIK data Monday also showed that producer prices fell 0.50% on the month in June.
In annual terms, consumer prices rose 8.37%producer prices increased 7.64%.
In the central bank's market survey, conducted June 22, the CPI was expected to rise 8.01% on the year by the end of 2010.
The central bank's quarterly inflation report, released in April, showed that the bank expected annual inflation in 2010 to be between 7.2%9.6%, with a midpoint of 8.4%.
The fall in the June CPI was well above market expectations, said Gizem Oztok, analyst at Garanti Yatirim, noting that there was a major decline particularly in food prices.
"We expect the decline in inflation to continue," Oztok said, adding that the country's annual inflation may reach between 7%7.5% by the end of 2010.
Annual CPI may reach lower levels, around 6%, in the first quarter of 2011, she said.
Oztok doesn't expect the central bank to change interest rates at its next monetary policy meeting July 15.
June 17, the central bank left its key overnight borrowing rate at 6.5%its overnight lending rate at 9%, in line with general market expectations.
The benchmark borrowing rate was cut 13 consecutive times--to 6.5% from 16.75%--between October 2008November 2009.
(YC-YC-E-ENG)