Turkey’s decision to raise natural gas and electricity prices are expected to have around a 35-40 basis point impact on annual inflation, economists said on Wednesday, a day after the central bank announced a revised annual inflation forecast of 13.4%. On Tuesday, sources said Turkish state pipeline operator Botas would raise the price of natural gas used for electricity production by 50% from Wednesday due to a weaker lira pushing oil and natural gas prices higher, Reuters reported.
Botas later said it had also raised natural gas prices for residential use by 9%, effective on Wednesday.
“The impact of oil and exchange rate-induced cost factors on energy prices other than fuel” were included in the central bank’s 2018 yearend inflation forecast, the bank said in its inflation report on Tuesday.
