The rate of inflation in Turkey, last month was 10.61%, up from 10.45% in December 2011. 

The January rise in CPI was driven largely by increases in the costs of tobacco and alcohol, and also by higher food and fuel costs.

The Central Bank of Turkey has a 2012 year end inflation target of just 5.5%, and says we should start to see the rate come down markedly, after the first quarter of this year.

Paradoxically, in Kalkan, the arrival of the leading supermarket chains, starting with Bim, will actually bring prices down.  This competition is good news for consumers, but is a challenge for local businesses.

Below: A chart showing the CPI rate in Turkey - in January 2012 it rose to 10.61%.

It is normal for the range of goods included in CPI calculations, (in all countries), to change from time to time.  The basket of Turkish goods has just changed, with 9 items leaving the basket, and 12 new ones added.

Now included in the Turkish CPI calculation are things like ayran (the popular yoghurt drink), shower gel, car wash charges, fruit juice extractors, mobile phone costs, digital TV fees, magazines and dishwasher tablets. 

Amongst the items dropping out of the basket are vine leaves, men's coats, clear light bulbs, washing up liquid, videos (films), and internet monthly fees.

If you wish to read more, here is an article from Today's Zaman, containing some good analysis: Today's Zaman report

Kalkan Turkish Local News - your window on Kalkan Turkey.

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