Turkey: Inflation steady in August
September 3, 2020
Consumer prices rose 0.86% over the previous month in August, picking up from the 0.58% rise recorded in July. Notably higher prices for transportation more than offset cheaper clothing and footwear.
Inflation came in at 11.8% in August, from July’s reading. Meanwhile, the trend pointed down slightly, with annual average inflation coming in at 11.3% in August (July: 11.5%). Lastly, core inflation rose to 11.0% from the previous month's 10.2%.
Muhammet Mercan, chief Turkey economist at ING, commented:
“Despite the disinflationary impact of domestic demand compression, exchange rate developments and elevated services inflation being highly sticky at current levels point to continuing challenges for the outlook.”