Turkey’s official annual inflation rate fell for a third consecutive month in August as consumer prices rose 31.51% year-on-year in the month, according to TurkStat (TUIK), the state statistics agency.

The figure marked a moderate deceleration from July and came in slightly below consensus forecasts. On a month-on-month basis, the consumer price index (CPI) rose 1.84%.

The slight cooling in headline inflation was driven by subdued price action in food and non-alcoholic beverages, which edged up just 0.22% on the month. The broader trajectory was, meanwhile, weighed down by sharp gains in transport costs, which were up 4.82% month-on-month.

Housing-related expenses, including utilities and gas, climbed 2.26% in the month. Transport alone added nearly half a percentage point to the headline monthly figure.

The producer price index (PPI), on the other hand, accelerated to 2.57% month-on-month in August, up from 1.52% in July. On an annual basis, factory-gate inflation ticked higher to 27.95%.

Core inflation, which strips out volatile items such as unprocessed food and energy, showed a mild uptick to 30.07% annually, underscoring the persistent stickiness of underlying price momentum.

Treasury and finance minister Mehmet Simsek has repeatedly pledged to stick with strict fiscal and monetary measures to bring inflation down to a single-digit trajectory over the medium term. Yet, the persistence of services inflation and rising input costs leave policymakers navigating a delicate balance as they seek to anchor long-term inflation expectations, currently projected by market participants to end the year near 29.5%, without triggering an economic slump.