Inflation in Turkey accelerated to 58.9% in August

Inflation in Turkey continues to accelerate, reaching its highest level in eight months in August. The increase in the indicator is due to several factors, including an increase in taxes, a weakening of the lira and an increase in food prices.

Thus, consumer prices increased by 58.9% in annual terms after an increase of 47.8% in July. Analysts predicted a more moderate acceleration of inflation, up to 55.9%.

Food prices jumped by 72.9%, reaching the highest level in the last eight months. In July, they increased by 60.7%. The increase in prices is also seen in the areas of utilities, transport, medical services, furniture and household appliances.

Core inflation, excluding the cost of food, energy, tobacco products and gold, also increased and amounted to 64.9%.

In contrast to the accelerating annual inflation, monthly inflation slowed to 9.1% in August from 9.5% in July. At the same time, the July figure was a record since December 2021.

The Central bank of Turkey expects that inflation in the country will decrease in the following years – in 2023 the indicator will be 58%, and in 2024 – 33%, and in 2025 – 15%.

The Turkish lira continues to remain under pressure. On Monday, the currency is trading around 26.77 lira for $1, compared with 26.58 lira at the close of the previous session.