Turkey beats 2003’s inflation target

Wholesale prices increased by 0.6pc in December compared to November – up 13.9pc over the past 12 months and also below the IMF-backed target of 16.5pc, it added.

This was the second year in a row that Turkey beat its inflation projection. In 2002, the country brought inflation down to 29.7pc from 68.5pc in 2001, beating its year-end target of 35pc.

Cutting chronic inflation is a key element of a $16 billion stand-by deal Turkey signed with the IMF after a severe financial crisis in 2001 plunged the country into its worst recession since the Second World War.