Turkey on 1 October announced an increase in the price of natural gas by 9.8% for households that will translate into a rise in electricity costs by 10.1%, according to the Turkish daily, Today’s Zaman. Industrial power prices were increased by 4.03% and the rate for offices rose by 8.06%, Reuters said, referring to state-ments from officials from the Energy Market Regulatory Agency (EPDK).
The step was taken to address the country’s budget deficit and rising energy costs in the global market, but it is seen as inflationary for the Turkish consumer. Turkey’s economy grew by 8.5% in 2011 but inflation was registered at 11% earlier this year and at 8.88% in August, well over the central bank target of 5% for 2012-13. (CONTINUED - 273 WORDS)