Single Digit Inflation After 32 Years

According to State Institute of Statistics (DIE) data, while wholesale prices decreased 0.03 percent, consumer prices increased 0.38 percent. Hence, the annual inflation rate is recorded at 9.56 percent for wholesale prices and 8.88 percent for consumer prices. According to the figures, the consumer price index has dropped to 1972 levels. Increases in the private sector manufacturing industry, referred to as core inflation, were 1.8 percent in May.

The monthly inflation figures were lower than market estimates. The closest estimates in the polls were around core inflation. Central Bank President, Sureyya Serdengecti, said the other day that inflation would decrease to single digit rates in May and warned, "let’s not fall in lassitude."

According to the DIE figures, the annual inflation rates for May 2003 were 33.7 for wholesale prices and 30.7 for consumer prices.

May 2004’s annual inflation rate is 24.14 points below the May 2003 wholesale prices, and 21.82 points below last year’s consumer prices for wholesale prices and 18.19 percent for consumer prices.