Aug 03 2018

Turkish inflation accelerates to 15.9 percent

Turkey’s inflation rate increased to 15.9 percent, extending the highest level since 2003 as food and transport costs surged.

The rate rose from 15.4 percent in June, the Turkish Statistical Institute said on Friday. The increase was less than economists’ predictions of more than 16 percent.

Inflation in food and non-alcoholic beverages was 19.4 percent and in transportation 24.2 percent.

Turkey inflation

Producer price inflation climbed to 25 percent from 23.7 percent in June. The rate was 12.1 percent in January.

Turkish inflation is surging after the lira slumped almost 30 percent against the dollar this year and the country’s central bank belatedly raised interest rates to curb the lira’s decline. The bank raised its year-end estimate for inflation to 13.4 percent this week from the 8.4 percent it had predicted in April.

The inflation rate for intermediate goods used in manufacturing was 29.9 percent, 26.6 percent for capital goods and 36.5 percent for energy, the institute said.

The lira fell 0.2 percent to 5.08 per dollar at 10:26 a.m. in Istanbul. It had reached a record low of 5.11 against the U.S. currency earlier in the day.