Turkey's consumer inflation down in August

ANKARA

Turkey’s annual consumer price inflation rate has declined in August, official data from the Turkish Statistical Institute (TurkStat) revealed on Monday.

The annual inflation rate was 8.05 percent in August compared to 8.79 percent in July, significantly better than median estimate of inflation expectation survey held by Anadolu Agency Finance News.

The TurkStat report showed that on a monthly basis the reading was also 0.29 point lower compared to July.

“With the core inflation coming below 8.5 percent, chances of the Consumer Price Inflation to dip below 8 percent, which is in line with official estimates of 7.5 percent, is now stronger,” Bora Tamer Yilmaz from Ziraat Investment House said.

Alcoholic beverages and tobacco prices were the main driver of inflation as they were up 23.03 percent annually.

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

“The figures are better than expected. When we examine the sub-indices, food price inflation [...] plays a role in the reduction of inflation by falling 1.92 percent in August [from July]," analyst Enver Erkan from KapitalFX said.

However, Erkan warned that current inflation levels were still much higher than official medium-term economic program targets of 5-7 percent and warned that officials should tread carefully in the coming months.