Natural gas price cut to reduce CPI 0.3 percent in Feb - Turkish CB .hurriyet2008-detailbox-newslink { font-family: Arial, Helvetica, sans-serif; font-size:13px; font-weight:bold; text-decoration:none; color:#000000;} .hurriyet2008-detailbox-newslink:hover { font-family: Arial, Helvetica, sans-serif; font-size:13px; font-weight:bold; text-decoration:underline; color:#990000;} The Turkish Central Bank said on Wednesday it expected the gradual fall in inflation to continue in the coming period, and forecast that a recent natural gas price cut would lower the consumer price index by 0.3 percent in February.

The Turkish consumer price index registered 9.5 percent year-on-year in January, hitting single digits for the first time since April in 2008, as the annual producer price index rate fell to 7.90 percent according to the figures released on Tuesday.

"The February price cut in natural gas is expected to lower consumer price inflation by 0.3 points and the fall in annual energy price inflation is expected to continue," the bank said in its monthly price developments report for January.

Natural gas prices, which rose by nearly 80 percent during the past year, were cut between 17-18 percent as of Feb. 1.

"The gradual declining trend in annual service price inflation is predicted to continue in the coming period," the statement also said.

The bank added that the impact of lira depreciation on producer prices was offset by the fall in commodity prices and there was no significant cost-oriented pressure on producer prices from the weaker lira.