Turkey Inflation Rate at 6-Month High of 8.79% in July


Turkey's consumer prices went up by 8.79 percent year-on-year in July 2016 following a 7.54 percent rise in a month earlier, beating market expectation of 8.2 percent growth. It was the highest figure since January, mostly due to a sharper rise in food cost.

Year-on-year, prices of food and non-alcoholic beverages jumped 9.69 percent (+6.63 percent in June); housing and utilities cost rose 6.69 percent (+6.68 percent in June) and cost of transportation increased by 6.13 percent(+6.45 percent). Additional upward pressure came from: furnishings, household equipment, routine maintenance of the house (+8.21 percent from +9.75 percent); hotels, cafes and restaurants (+9.96 percent from +9.95 percent); clothing and footwear (+8.26 percent from +7.31 percent); alcoholic beverages and tobacco (+19.36 percent from +12.80 percent); and miscellaneous goods and services (+12.68 percent from +11.33 percent).

On a monthly basis, consumer prices rose 1.16 percent, accelerating from a 0.47 percent rise in June and above market expectations of 0.72 percent gain. Prices of food and non-alcoholic beverages (+3.16 percent from +1.16 percent in June) and hotels, cafes and restaurants (+1.22 percent from+0.49 percent) went up sharply; while cost of clothing and footwear (-4.14 percent from -1.33 percent) dropped.

Turkstat | Mojdeh Kazemi | mojdeh@tradingeconomics.com
8/3/2016 8:17:53 AM