Turkey posts highest annual inflation rate in two years

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Turkey's annual inflation rate climbed in August compared to the previous month, the Turkish Statistical Institute (TurkStat) announced today (September 3).

Consumer prices in Turkey rose 19.25 percent year-on-year last month from 18.95 percent in July, TurkStat said.

This was the highest inflation rate in two years and surpassed the policy rate, which is currently at 19 percent.

Annual rate of changes in the consumer price index (Images: TurkStat)

Food and non-alcoholic beverages showed the greatest year-on-year price rise with 29 percent, followed by furnishings and household equipment with 22.91 percent, and transportation with 21.76 percent.

Meanwhile, monthly inflation also climbed 1.12 percent in August over the previous month, in parallel with expert predictions.

The median of estimates for August by the economists had been a rise of 0.72 percent compared to the previous month.

TurkStat noted that the only monthly decreases in consumer prices were recorded in clothing and footwear with 3.08 percent and transportation with 0.77 percent.

CPI annual rate of changes in main groups

The highest monthly rise was in food and non-alcoholic beverages with 3.18 percent; hotels, cafes, and restaurants with 2.27 percent; and furnishings and household equipment with 1.38 percent.

Turkey's Central Bank forecasts that the country's inflation will hit 14.1 percent at the end of the year. (HA/VK)