Turkish Inflation Rate Eases to 9-Month Low

Turkey's annual inflation rate fell to 18.71 percent in May 2019 from 19.50 percent in the previous month and below market expectations of 19.1 percent. It was the lowest rate since August last year.

Prices rose at a softer pace for: food and non-alcoholic beverages (28.44 percent vs 31.86 percent in April); housing, water, electricity, gas and other fuels (14.68 percent vs 15.31 percent); transportation (12.40 percent vs 12.55 percent); furnishing, household equipment, routine maintenance of the house (24.54 percent vs 27.64 percent); clothing and footwear (4.78 percent vs 5.91 percent); and miscellaneous goods and services (26.75 percent vs 27.47 percent). Meanwhile, hotels, cafes and restaurants inflation accelerated to (19.77 percent vs 19.58 percent) and alcoholic beverages and tobacco jumped 19.22 percent, following a 9.66 percent gain in April.

Annual core inflation rate, which excludes energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, eased to 15.87 percent in May, the lowest since last July, from 16.30 percent in the preceding month.

On a monthly basis, consumer prices advanced 0.95 percent in May, slowing from a 1.69 percent climb in April and also below market consensus of 1.3 percent. The sharpest price increases were recorded for alcoholic beverages and tobacco (6.77 percent), clothing and footwear (5.36 percent), furnishing and household equipment (2.65 percent), miscellaneous goods and services (1.94 percent), and food and non-alcoholic beverages (1.40 percent).

Turkish Inflation Rate Eases to 9-Month Low

Turkish Statistical Institute | Joana Ferreira | joana.ferreira@tradingeconomics.com
6/3/2019 7:20:32 AM