Turkey’s inflation eases in August on decreases in food, clothing prices

ANKARA

Turkish consumer prices fell by 0.29 percent in August, showing a steeper decline than expected and the first decline in five months, helped by some easing in clothing and food prices, data from the Turkish Statistics Institute (TÜİK) showed on Sept. 5.

Consumer prices rose 8.05 percent year-on-year, which is still above the Central Bank’s year-end estimate of 7.5 percent.

The highest monthly decrease was seen in clothing and footwear with 4.69 percent, according to TÜİK data. In August, the other group that indicated a decrease was food and non-alcoholic beverages by 1.92 percent amongst the main groups.

Annual inflation in food prices was announced at 6.19 percent in August, lower than the 9.69 percent recorded in July.

The highest increase was seen in alcoholic beverages and tobacco products, both in a monthly and yearly basis, climbing by 3.44 percent and 23.03 percent, respectively.

Core inflation, which excludes volatile food prices, also rose, climbing 8.41 percent on an annual basis.

“The decline in inflation strengthens the Central Bank’s hand for a rate cut in the next meeting this month, but the core inflation is still high, requiring them to remain cautious with rate cuts,” said İş Investment economist Muammer Kömürcüoğlu, as quoted by Reuters.

“Increasing global risk appetite and inflation data supporting rate cuts could support stocks but developments regarding Syria are limiting positive reaction,” he added.