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Consumer prices were up 16.19% year-on-year, higher than 16.11%
in a Reuters poll and 15.61% in February. Inflation remains well
above a 5% official target and has been in double digits for
most of the past four years.
Month-on-month CPI inflation was 1.08%, the Turkish Statistical
Institute said, compared to a Reuters poll forecast of 1.04%.
The former central bank governor, Naci Agbal, had raised the
policy rate to 19% from 10.25%. But he was ousted on March 20 -
after only four months on the job and two days after a last rate
hike - prompting a 12% drop in the lira to near record lows.
President Tayyip Erdogan has abruptly ousted four bank chiefs in
less than two years, hurting Turkey's monetary credibility and
contributing to the currency's long-term decline, which in turn
has driven up overall inflation via imports.
Kavcioglu has in the past criticised tight policy, including
making the unorthodox claim shared by Erdogan that high rates
cause inflation. Yet he has told investors and bankers in recent
weeks rates must remain high due to high inflation.
The producer price index rose 4.13% month-on-month in March for
an annual rise of 31.2%, the data showed.
The monthly CPI price rise was underpinned by demand in the
health, education and hospitality groups, including restaurants,
after coronavirus measures were eased.
Annual rises were driven by higher energy and import prices
which raised transportation-related prices by nearly 25%.
According to a February forecast, the central bank expected a
maximum of 17% inflation in March and a bit more in April.
Analysts predict it will rise through April, when Goldman Sachs
expects it to peak at 18%.
(Reporting by Oben Mumcuoglu and Ezgi Erkoyun; Editing by
Jonathan Spicer & Shri Navaratnam)
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