Turkish CPI inflation comes in at 0.09% m/m in July

By bne IntelliNews August 3, 2015

Consumer prices rose by 0.09% m/m (market consensus forecast: 0.05% m/m) in July, after declining 0.5% m/m in the previous month, bringing the annual inflation rate to 6.81% from 7.2% in June, data of the statistics office TUIK showed on August 3.

Food prices increased by 0.28% m/m adding 0.06 percentage points to the headline inflation, while the 4.97% m/m decline in clothing prices shaved off 0.33 percentage points. Communication prices fell 0.01% m/m and transportation costs rose 0.41% m/m in July.

The I-index, the central bank’s favourite core inflation indicator, rose 0.11% July an annualised increase of 7.31%.

Last week, the central bank lifted end-year inflation forecast to 6.9% from a previous 6.8%, but left its end-2016 forecast unchanged at 5.5%. The correction in food prices and recent decline in oil prices support disinflation, it also said last week but warned that exchange rate movements have delayed the recovery in the core inflation trend.

TUIK data also showed that domestic producer prices fell by 0.32% m/m and the annual increase in producer prices eased from 6.73% in June to 5.62% in July.

July CPI by Main Expenditure Groups (%)
  Weights m/m y/y
Headline 100 0.09 6.81
Food and non-alcoholic beverages 24.25 0.28 9.25
Alcoholic beverages and tobacco 4.82 1.16 3.28
Clothing and footwear 7.38 -4.97 4.06
Housing, utilities 15.79 0.33 8.15
Furnishings, household equipment 7.78 1.60 8.69
Health 2.57 0.32 6.49
Transportation 15.38 0.41 0.92
Communications 4.38 -0.01 1.19
Recreation and culture 3.54 -0.18 7.72
Education 2.53 0.51 6.15
Hotels, cafes and restaurants 6.98 1.21 13.80
Miscellaneous goods and services 4.60 0.10 9.31
Source: tuik      

Related Articles

Austrian Chancellor: Tell Turkey it's simply not an EU membership candidate

Austrian Chancellor Christian Kern told a German daily on July 27 that when it comes to Turkey’s European Union accession hopes "it has to be legitimate to say: 'You simply are not a ... more

Spooked Turkish textile exporters fear missing target due to Berlin's Turkey travel warnings

Some German buyers have cancelled trips to Turkey after the rise in political tension between Ankara and Berlin, Seref Fayat, head of the Turkish Clothing Manufacturers Association, said on July 25, ... more

Turkey reportedly set to raise debt limit for first time in 8 years as Ankara fuels credit

Turkey is preparing to raise its debt limit for the first time since 2009 after first-half borrowing left the Treasury near its legal ceiling, Bloomberg reported on July 25. Citing a person with ... more

Dismiss