ISTANBUL: Turkish consumer prices climbed 0.99 percent in March from a month earlier in line with expectations, data showed on Tuesday, with annual inflation easing slightly towards 10 percent.
On an annual basis, consumer price inflation eased to 10.23 percent in March, continuing a downward trend from a 14-year high of 12.98 which it hit in November, but still far above the government's target of 5 percent.
In a Reuters poll of 15 analysts, month-on-month inflation was forecast to be 1 percent.
Ankara aims to bring inflation down to 7.0 percent at the end of this year according to its medium-term programme, a three-year policy roadmap renewed each year.
"There are very strong negative base effects at the moment. Normally inflation should decelerate but that is not the case, so the Turkish economy is close to overheating," Credit Agricole senior emerging markets strategist Guillaume Tresca told Reuters, adding he expected further lira depreciation.
He said that the Turkish central bank was not seen reacting the data and that there would need to be very strong lira depreciation for it to do so. The central bank will hold its next rate-setting meeting on April 25.
Food and non-alcoholic drinks prices rose 2.03 percent on a monthly basis in March, the data showed. No sectoral falls were observed among the main spending groups in March.
The Turkish lira weakened as far as 3.9859 against the US dollar after the announcement from 3.9795 immediately before the data. It stood at 3.9800 at 1044 GMT.
Producer prices rose 1.54 percent month-on-month in March for an annual rise of 14.28 percent. Core "C" CPI inflation was 11.44 percent year-on-year.
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