Turkey: Inflation jumps to six-month high in July
August 3, 2016
In July, consumer prices rose 1.16% over the previous month and more than doubled June’s 0.47% increase. According to the statistical office, July’s increase reflected much higher prices for alcoholic beverages and tobacco as well as for food and non-alcoholic beverages. The weakening of the lira following the failed military coup on 15–16 July raised import prices and contributed to the surge.
Inflation shot up from 7.6% in June to 8.8% in July. The print came in above the 8.5% that market analysts had expected and represented the highest reading in six months.
The core prices index, which excludes more volatile categories, such as unprocessed food and energy, increased 0.76% in July over the previous month (June: +0.20% month-on-month). Core inflation jumped from June’s 8.9% to 9.5% in July.