Spring is in the air for the economy

Inflation which had seen a rise due to food prices has now decreased due to the same reason. With the Central Bank expectations at 6.5 percent, the year 2010 closed at 6.4 percent inflation, surpassing the target for a recovery in exports. Estimations of exports for 2010 were at $111.7 billion, yet reached $113.7 billion. The bar has been raised for foreign sales and this year’s target is now at $127 billion.



As debate of world economies flailing continues as the economic sector gears up to enter into the year 2011, it appears that one by one, the targets set for this past year by Turkey have indeed been met. Food prices contributed to the return to normal of 2010's annual inflation rate and the 6.40 percent consumer price index (CPI) means Turkey's economy has met the estimated target. Exports surpassed expectations, completing 2010 at 113.7 billion dollars. According to data released by the Turkish Statistics Institute, inflation in 2010 dropped by 0.13 points reaching the 6.4 percentile. This translates to a 0.1 point difference to the target set by the Central Bank. As the year came to a close with the final monthly inflation rate dropping by 0.3 percent, it appears the most significant reason for the previous inflation increase was also the reason behind the drop as food prices recessed by 2.66 percent month to monthly drop. The following are the top headlines for inflation in 2010: The bad boy of inflation, food prices, has deceived everyone's expectations, including the Central Bank. Having hit the double digits within the year, the food price index surprised all with a 2.66 percentage drop in December. As the most important factor behind inflation, food prices closed out the year 2010 with a 7.02 percentage increase. Expectations for the first quarter of 2011 are for the drop to continue while bringing inflation down to under the five percentile. That is of course, if there are no new surprises!