Turkey Inflation Rate Rises in August

Consumer prices in Turkey increased 7.14 percent year-on-year in August of 2015, up from 6.81 percent in the previous month, as cost of food, housing, hotels, cafes and restaurants rose at a faster pace.

Year-on-year, cost of food and non-alcoholic beverages increased by 9.71 percent, following a 9.25 percent growth in July; housing and utilities prices went up 8.19 percent, compared to a 8.15 growth in the previous month; hotels, cafes and restaurants prices increased by 14.26 percent, following a 13.8 percent growth in July; and transportation cost rose 0.6 percent, compared to a 0.92 percent growth in the previous month. Additional upward pressure came from: miscellaneous goods and services (+9.91 percent); furnishings and household equipment (+8.60 percent); recreation and culture (+9.92 percent); health (+6.72 percent); and education (+6.84 percent).

On a monthly basis, consumer prices increased 0.4 percent, up from a 0.09 percent in July. Higher prices of food and non-alcoholic beverages (+1.31 percent), housing (+0.35 percent), hotels, cafes and restaurants (+2.05 percent), recreation and culture (+1.96 percent) led the growth. In contrast, clothing and footwear prices declined the most by 4.32 percent.

In August Turkey's lira hit a new record low against the US dollar, depreciating more than 5 percent and putting further upward pressure in prices of imported goods. The central bank has already increased inflation forecast to 6.9 percent by the end of 2015 from 6.8 percent. However, policymakers left its benchmark interest rate on hold at 7.5 percent on August 18th. 

Turkey Inflation Rate Rises in August

Turkstat | yekaterina@tradingeconomics.com
9/3/2015 12:03:52 PM