Turkey's CPI increases 0.02 percent, PPI rises 0.65 percent in April

The figures, released by the Turkish Statistics Institute, or TURKSTAT, reveal that according to 12-month averages, Turkey’s annual inflation registered 6.13 percent for consumer prices and minus 0.35 percent for producer prices.

Turkey’s CPI hit its lowest level and PPI recorded a minus figure for the first time since data records began in 2003.

The decline in Turkey's inflation figures raised the prospect of further cuts to the benchmark interest rate.

The central bank has shaved 7 percentage points from the benchmark rate in sixth months as it tries to limit an economic contraction the government forecasts at 3.6 percent this year. The benchmark rate is 9.75 percent, a record low, and the bank said on April 29 that there would be no clear recovery in economic activity in the short term.

Turkey’s economy contracted 6.2 percent in the fourth quarter of 2008, the first decline in seven years.