Inflation in Turkey accelerated for the second consecutive month in August and reached an eight-month high due to tax hikes, a weaker lira and rising food prices.
Consumer prices increased by 58.9% year-on-year, compared to a 47.8% rise in July, according to the country’s statistical institute (Turkstat).
Analysts surveyed by Trading Economics had predicted a more moderate acceleration of inflation, to 55.9%.
Food prices jumped 72.9%, the highest rise in eight months. In July, they rose by 60.7%.
Utilities went up by 25% last month (19.3% in July), transportation by 70.2% (43.4%), and medical services by 77.6% (75.9%). The growth in the cost of furniture and household appliances accelerated to 58.9% from 50.1%.
Core inflation, which excludes the cost of food, energy, tobacco products and gold, was 64.9% in August, compared to 56.1% a month earlier, Turkstat reports.
Meanwhile, monthly consumer price growth slowed to 9.1% in August from 9.5% in July. The July figure was the highest since December 2021.
The Central Bank of Turkey expects inflation to be 58% in 2023, 33% in 2024, and 15% in 2025.
The Turkish national currency is trading at around 26.77 lira per $1 on Monday, compared to 26.73 lira at the close of the previous session. The Turkish stock index BIST 100 has risen by 1% since the market opened.
Earlier, the Club of Experts project analyzed the state of the Turkish economy before the elections, see more here
