Turkey: Inflation unexpectedly accelerates in July
August 4, 2014
In July, consumer prices increased 0.45% over the previous month, which was above the 0.31% rise recorded in June. According to the statistical office, the increase was primarily the result of higher prices for recreation and culture as well as for alcoholic beverages and tobacco. Annual inflation increased from 9.2% in June to 9.3% in July. The print overshot market expectations of the index slowing to an 8.8% increase.
The core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose 0.56% over the previous month in July (June: +0.38% month-on-month). Annual core inflation inched up from 9.6% in June to 10.0% in July, which marked the highest reading since October 2008.