Turkey inflation accelerates to 16.7 percent in July

Turkey’s annual inflation rate rose to 16.7 percent in July, the Turkish Statistical Institute said.

Consumer price inflation accelerated from 15.7 percent in June, the institute said on its website on Monday. The increase was led by price hikes in food, furniture and alcohol and tobacco, according to the figures.

Turkey is seeking to slow inflation to 15.9 percent by the end of the year and to 9.8 percent in 2020. But at the same time, the Turkish authorities are stimulating economic growth through tax cuts, reductions in interest rates and higher spending, measures that can stoke inflation.

The inflation rate was expected to increase to 16.9 percent in July, according to two polls of economists conducted by Reuters and Bloomberg before the data was published. The state-run Anadolu news agency had predicted a rate of 16.7 percent in its survey published last week.

Inflation was 1.36 percent on a month-on-month basis compared with June, the institute said.

Turkish inflation has slowed from a 15-year high of 25.2 percent in October. Prices had surged after concerns among investors an overheating economy and a political spat with the United States sparked a currency crisis.

Producer price inflation eased to 21.7 percent in July from 25 percent in June, according to the data.