The core PPI was up 0.2%.

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Over the last 12 months, the overall PPI index is up 1.1% in March versus 1.7% in February.

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Mr Nadir said Turkey's then finance minister Gunes Taner had offered funds to shore up PPI and said Turkey would give "whatever it takes" to rescue the company.

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The FSA took up problems with the sale of PPI three years ago.

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Looking at input costs, which generally gives insight into pent-up inflation, one sees that PPI fell 0.3% in July on the back of a marked fall in gas prices (down 3.1% in July and 40% on a three-month annualized basis).

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Up 0.3%, core PPI was boosted by a rebound in the vehicle components.

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Inflation bounced up again in July, with the Producer Price Index (PPI) jumping 0.2% after having declined 0.4% in June.

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With an economy barely moving above stall speed, core PPI rose 0.4% in July, indicating that inflation is picking up outside the volatile food and energy categories.

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Claims firms have been blamed for stoking up thousands of bogus claims against banks for the mis-selling of payment protection insurance (PPI).

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