Turkish November Inflation Rate Lower than Expected
The Turkish consumer price inflation eased to 21.62 percent year-on-year in November 2018 from a near 15-year high of 25.24 percent in the prior month, and below market expectations of 22.58 percent. It was the lowest inflation rate since August mainly due to a favourable trend in oil, lira recovery and tax cuts in consumer durables, furniture and automobile introduced by the government in early November.
12/3/2018 10:56:07 AM
Inflation slowed for: food and non-alcoholic beverages (25.66 percent vs 29.26 percent in October); transportation (21.03 percent vs 32.00 percent); housing and utilities (24.76 percent vs 25.72 percent); furnishing and household equipment (32.73 percent vs 37.92 percent); hotels, cafes and restaurants (20.01 percent vs 20.06 percent); clothing and footwear (16.86 percent vs 18.45 percent); and miscellaneous goods and services (27.87 percent vs 31.50 percent). Meanwhile, prices of alcoholic beverages and tobacco went up at a faster pace (2.23 percent vs 2.06 percent).
Annual core inflation rate, which excludes energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, dropped to 20.72 percent in November from an all-time high of 24.34 percent in the previous month.
On a monthly basis, consumer prices fell 1.44 percent in November, following a 2.67 percent climb in October and compared to market expectations of a 0.75 percent drop. This was the first monthly decline in consumer prices since June 2017, due to decreases in costs of transportation (-6.46 percent); furnishing and household equipment (-2.85 percent); recreation and culture (-2.08 percent); miscellaneous goods and services (-0.96 percent); and food and non-alcoholic beverages (-0.74 percent).