Istanbul, September 3 (financeflashnews.com) – The pace of inflation growth in Turkey slowed again in August, surpassing analysts’ expectations. This deceleration was driven by base effects and a slower increase in food prices, according to reports from Reuters and AFP.
Key Inflation Data
According to the Turkish Statistical Institute, the annual inflation rate in August 2024 dropped to 51.97%, down from 61.78% in July, and below the analysts’ forecast of 52.20%. This marks the third consecutive month of slowing consumer price growth.
The overall price increase eased across most categories, particularly in food and non-alcoholic beverages (down to 44.88% from 58.91% in July) and transportation (down to 28.96% from 46.07%). However, inflation accelerated in the housing and electricity sectors, with prices rising to 101.49% from 98.48%.
Core Inflation and Monthly Trends
Core inflation, which excludes volatile food and energy prices, also saw a reduction, dropping to 51.56% in August from 60.23% in the previous month.
On a month-to-month basis, consumer prices in Turkey increased by 2.47% in August, a slower pace compared to the 3.23% increase in July.
Year-End Inflation Forecast
Analysts predict that Turkey’s annual inflation rate will reach 42.95% by the end of 2024, reflecting ongoing challenges in the country’s economic landscape.
Summary of Key Inflation Figures
| Metric | August 2024 | July 2024 | Analyst Forecast |
|---|---|---|---|
| Annual Inflation Rate | 51.97% | 61.78% | 52.20% |
| Core Inflation Rate | 51.56% | 60.23% | N/A |
| Monthly Consumer Price Increase | 2.47% | 3.23% | N/A |
| Food and Non-Alcoholic Beverages Inflation | 44.88% | 58.91% | N/A |
| Transportation Inflation | 28.96% | 46.07% | N/A |
| Housing and Electricity Inflation | 101.49% | 98.48% | N/A |
Outlook
Turkey’s inflation continues to present significant challenges, with certain sectors like housing and electricity showing persistent high inflation rates. However, the overall slowdown in inflation growth, particularly in essential categories like food and transportation, provides some relief. The end-of-year inflation forecast of 42.95% underscores the ongoing economic difficulties faced by the country.
Keywords: Turkey, inflation, consumer prices, Turkish Statistical Institute, core inflation, food prices, energy prices, economic forecast
