Turkey's annual inflation at 15.85 percent in July

By Tuba Sahin

ANKARA

Consumer prices in Turkey went up by 15.85 percent in July compared to the same month last year, the Turkish Statistical Institute (TurkStat) announced on Friday.

The figure in July was up from 15.39 percent in June, standing at below expectations.

According to a group of economists polled by Anadolu Agency on Tuesday, Turkey's annual inflation rate had been expected to reach 16.48 percent in July.

On a yearly basis, the highest inflation was seen in transportation prices last month -- up 24.21 percent -- and furnishing and household equipment with 20.32 percent.

Last month, change in consumer price index saw a rise of 0.55 percent on a monthly basis, official data showed.

The median of estimates for the month by 20 economists was a 1.10 percent rise compared to the previous month.

"The highest monthly increase was 2.26 percent in hotels, cafes and restaurants," TurkStat said.

The monthly rate of change in consumer prices for furnishing and household equipment was 1.82 percent while it was 1.62 percent for recreation and culture, the institute noted.

Among the main expenditure groups, the highest monthly decrease was in clothing and footwear with a 3.07 percent decline, it added.

The Central Bank on Tuesday revised Turkey's year-end inflation forecast to 13.4 percent from 8.4 percent in a report released last April.

The rate is expected to fluctuate between 12.5 percent and 14.3 percent through the end of 2018, the bank's Governor Murat Cetinkaya said.

"Inflation is likely to be 13.4 percent at the end of 2018, 9.3 percent at the end of 2019, 6.7 percent at the end of 2020, and settle around 5 percent in the medium term," Cetinkaya said.

The average dollar/lira exchange rate was 4.77 last month and 4.63 in June, while the seven-month average rate was 4.22.

Since the beginning of this year, annual inflation saw its lowest level in March -- 10.23 percent -- and hit the highest level in July.