Turkey: Inflation moderates in August
September 5, 2012
In August, consumer prices added 0.56% over the previous month. The reading contrasted the 0.23% fall recorded in July and exceeded market expectations of a 0.25% rise. Despite the monthly increase, annual inflation fell from 9.1% in July to 8.9%. The monthly price rise mainly reflected an increase in prices for transportation as well as for food and non-alcoholic beverages, which more than offset a sharp decline in clothing and footwear prices. The core inflation index, which excludes more volatile categories such as unprocessed food and energy, fell 0.12% over the previous month (July: -0.13% month-on-month). As a result, annual core inflation dropped from 9.1% in July to 8.5% in August. The Central Bank of Turkey (CBRT) sees inflation ending the year at 6.2% and moderating to 5.1% by the end of 2013. The official inflation target, however, remains at 5.0% for both years.