Turkey: Inflation eases in August
September 3, 2013
In August, consumer prices fell 0.10% over the previous month. The decrease contrasted the 0.31% rise seen in the previous month but undershot the 0.15% decrease the market had expected. According to the statistical office, the drop was mostly due to lower prices for clothing and footwear as well as for food and non-alcoholic beverages. Annual inflation eased from 8.9% in July to 8.2% in August.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.19% over the previous month (July: +0.18% month-on-month) driving annual core inflation to rise to 7.3%, up from 6.9% in July.
The Central Bank of Turkey (CBRT) sees inflation ending 2013 at 6.2%, before decelerating to 5.0% in 2014. The Bank's official inflation target remains at 5.0%. FocusEconomics panelists expect inflation to close this year at 6.8%, which is up 0.2 percentage points from last month's forecast. For 2014, the panel sees inflation moderating to 6.1% by year-end.