Turkey: Inflation drops to lowest level since November 2021 in August
Latest reading: Inflation fell to 33.0% in August, following July’s 33.5%. August’s figure marked the lowest inflation rate since November 2021. The result was driven by moderating price pressures for transport and housing and utilities. Moreover, prices for restaurants and hotels grew at a more subdued pace.
Annual average inflation fell to 39.6% in August (July: 41.1%). Meanwhile, core inflation fell to 33.0% in August from July’s 34.7%.
Finally, consumer prices increased 2.04% in August over the previous month, moderating from July’s 2.06% increase.
Outlook: Our Consensus is for inflation to cool further in the coming quarters thanks to a high base effect and past monetary policy tightening.