Turkish Inflation Rate Hits New 14-1/2-Year High

The Turkish consumer price inflation rose to 17.90 percent year-on-year in August 2018 from 15.85 percent in the previous month, and below market expectations of 21.50 percent. Still, inflation remained well above the central bank's target of 5 percent and hit the highest level since December 2003 as the lira slumped to fresh record lows amid a currency crisis.

Main upward pressure came from: food and non-alcoholic beverages (19.75 percent vs 19.40 percent in July); transportation (27.13 percent vs 24.21 percent); housing and utilities (16.30 percent vs 12.78 percent); furnishing, household equipment, routine maintenance of the house (23.76 percent vs 20.32 percent); hotels, cafes and restaurants (14.83 percent vs 13.86 percent); clothing and footwear (13.59 percent vs 11.85 percent); alcoholic beverages and tobacco (1.81 percent vs 1.43 percent); and miscellaneous goods and services (23.23 percent vs 17.24 percent).

Annual core inflation rate, which excludes energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, rose to an all-time high of 17.22 percent in August from 15.10 percent in the previous month.

On a monthly basis, consumer prices jumped 2.30 percent in August, following a 0.55 percent rise in July and beating market expectations of 2.23 percent. The sharpest increases were recorded for miscellaneous goods and services (5.85 percent), furnishing and household equipment (4.56 percent), transportation (4.45 percent), housing (3.85 percent) and communication (2.63 percent).

Turkish Inflation Rate Hits New 14-1/2-Year High

Turkish Statistical Institute | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/3/2018 7:24:41 AM