Turkish inflation rises to 15.85 pct in July
The annual inflation in Turkey surged to 15.85 in July, according to official data released on Aug. 3.
“A rise in general index was realized in Consumer Price Index [2003=100] in the previous month by 0.55 percent, in December of the previous year by 9.77 percent, in same month of the previous year by 15.85 percent and in the 12 months moving averages basis by 12 percent in July 2018,” the Turkish Statistical Institute (TÜİK) said in its statement.
Core inflation, which excludes volatile items such as food, energy and gold, was 15.1 percent in July, up from 14.6 percent.
Treasury and Finance Minister Berat Albayrak said the government’s “number one goal” was for inflation and interest rates to fall.
“We will see single-digit inflation in 2019,” Albayrak told private broadcaster NTV on Aug. 3.
The lira was trading 0.5 percent lower at 5.07 per dollar following the inflation data release, as the increase in prices on monthly basis was lower than estimates due to a decreasing trend in food prices.
Analysts have voiced their concerns over the further effects of the weakening lira on Turkey’s inflation.
The Istanbul-based QNB Finansbank’s chief economist, Gökçe Çelik, forecast year-end inflation would reach 16.2 percent, raising a previous prediction of 15.5 percent.
Despite the sub-consensus headline data, “today’s print is far from providing relief,” Çelik told AFP, warning the “underlying trend will continue to deteriorate” and be magnified by the ongoing currency depreciation.
Besides, a separate report by TÜİK showed the country’s producer’s price index rose 25 percent in July from a year earlier, up from 23.7 percent. That is the highest reading since July 2003.
Meanwhile, the highest monthly consumer price increase was seen in hotels, cafes and restaurants with an average of 2.26 percent, whereas the highest monthly decrease was in clothing and footwear with an average of 3.07 percent, according to the TÜİK statement.
The highest annual CPI increase was 24.21 percent in transportation. Furnishing and household equipment with 20.32 percent, food and non-alcoholic beverages with 19.40 percent, miscellaneous goods and services with 17.24 percent, and hotels, cafes and restaurants with 13.86 percent were the other main groups where high annual increases were realized.