Turkish inflation exceeds expectations in March due to rising food prices

ISTANBUL (Reuters) - Data released on Friday showed that consumers in Turkey prices rose 1.2 percent in March from the level in the previous month to exceed the expectations of inflation due to rising food costs.

These data may provide justification for the central bank to resist the pressures on him to cut interest rates. Turkish President Recep Tayyip Erdogan and a reduction in borrowing costs in the face of the slowdown in growth and a general election in June, raising fears for the independence of the Central Bank.

The Turkish Statistics Institute said consumer prices rose 1.19 percent on a monthly basis, beating analysts' expectations, much to rise 0.89 percent in a Reuters poll.

On an annual basis the inflation rate stood at 7.61 percent. The data indicate that domestic producers prices rose 1.05 percent on a monthly basis while it rose 3.41 percent on an annual basis.

However, separate data on car sales in March gave a bit brighter picture of the performance where consumers have shown a growth of 75 percent compared with the corresponding period last year, while sales hit by higher taxes and tighter credit rules.

He said Finance Minister Mehmet Şimşek station NTV television in an interview, "We are in direct confrontation with the inflationary path inconsistent with the direction that we want." He said that this trend may benefit from falling oil prices.

He added that he will go down with the Turkey "easily" this year of four per cent economic growth. He said the nuclear agreement reached by world powers with Iran would have a positive impact on Turkey's exports.