ANKARA
Inflation in Turkey increased in March to its highest level over the past eight months and is expected to continue rising until June, according to reports from Turkey's statistical authority and central bank.
The Consumer Price Index rose by 1.13 percent in March 2014 compared with February - an increase of 8.39 percent on the same period last year, the Turkish Statistical Institute (TurkStat) reported on Thursday.
Meanwhile, the Domestic Producer Price Index (D-PPI) - the change in prices faced by producers of goods and services - increased by 0.74 percent in March compared to the previous month.
The increase represented a rise of 12.31 percent for the month compared to March last year.
- Deflation fears eased
A 13.74 percent annual rise in transport represented the highest increase in the CPI index, while a 15.26 percent rise in the cost of capital goods was the biggest factor in pushing up the D-PPI.
In comparison, inflation in the eurozone is expected to fall to 0.5 percent in March - the lowest rate since November 2009 and below the European Central Bank's two percent target, according to Eurostat, the statistical office for the European Union.
The European Union's annual inflation was 0.8 percent in February 2014, down from 0.9 percent in January.
Relatively stable inflation eased some economists' concerns about whether the euro bloc will suffer deflation, potentially derailing economic growth.
The bank said in a statement: “Inflation is expected to increase until June, partly reflecting base effects."
“The tight monetary policy stance will be maintained until there is a significant improvement in the inflation outlook."
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