Chronic inflation

Inflation to total 2.5 percent by end of year

BELGRADE -- Inter-annual inflation will total around 2.5 percent in the next few months, which is the upper limit of the target inflation rate, according to the NBS.

The central bank also said there is a chance for inflation to remain within the 4 percent plus or minus 1.5 percent target rate in some months.

Despite the fall in world commodity prices, primarily oil, in Turkey inflation rates cannot be pulled down to the desired level. Central Bank Governor Erdem Başçı announced the Inflation Report last week, saying that they had expected a fall in inflation in October, but the opposite happened.

Turkish inflation dropped under 9 percent in September for the first time in five months, beating the market expectations, during the month before the hike in gas and electricity prices are implemented.

Turkish inflation accelerated above expectations in July, climbing to 9.32 percent on an annual basis due to disappointing food price levels, official data has shown, marking the fourth consecutive month that the rate remained above 9 percent.