Turkey's annual inflation slips to 15.01% in August

Turkey's annual inflation slips to 15.01% in August

Turkeys annual inflation slips to 15.01% in August

Consumer prices in Turkey went up by 15.01% in August compared to the same month last year, the Turkish Statistical Institute (TurkStat) announced on Sept. 3.       

August's figure was down from 16.65% in July, beating expectations.     

According to a group of economists polled by Anadolu Agency last week, Turkey's annual inflation rate had been projected to hit 15.60% in August.     

"The highest annual increase was 41.42% in alcoholic beverages and tobacco," TurkStat said.     

“There were significant declines in consumer, producer and core inflations. Downward trend in inflation continues due to the decline in the producer price index,” Treasury and Finance Minister Berat Albayrak said on Twitter.

“With our policies, which prioritize the fight against inflation and healthy growth, we will meet our end-year targets in all fields,” Albayrak added.

Last month, change in consumer price index saw a rise of 0.86% on a monthly basis, data showed.     

The median of estimates for August by 14 economists was a 1.38% rise compared to the previous month.     

Data showed that the highest monthly rate of change in consumer prices was seen in 19.11% in alcoholic beverages and tobacco.     

It was followed with education with 4.26% and housing with 2.04%.     

Among the main expenditure groups, the highest monthly decrease was in transportation with a 1.94% decline, it added.     

In July, Turkey's Central Bank cut its year-end inflation forecast for 2019 to 13.9%, down from 14.6% in its previous report.     

The rate is expected to fluctuate between 11.5% and 16.3% through the end of this year, the bank's governor, Murat Uysal, said.     

The bank kept inflation forecasts constant for next year and 2021 at 8.2% and 5.4%, respectively.     

The country's inflation rate target is 15.9% this year, 9.8% next year, and 6.0% in 2021, under the new economic program announced last September.     

Since the beginning of this year, annual inflation saw its lowest level in August and hit the highest level in January at 20.35%.