August 1, 2018 / 7:01 AM / 10 months ago

Turkey's natural gas, electricity price hikes to have 35-40 bp impact on inflation -economists

ANKARA, Aug 1 (Reuters) - 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 percent.

On Tuesday, sources said Turkish state pipeline operator Botas would raise the price of natural gas used for electricity production by 50 percent from Wednesday due to a weaker lira pushing oil and natural gas prices higher.

Botas later said it had also raised natural gas prices for residential use by 9 percent, 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 year-end inflation forecast, the bank said in its inflation report on Tuesday. (Reporting by Nevzat Devranoglu; writing by Tuvan Gumrukcu; editing by Jason Neely)

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