Turkish Inflation Accelerates More Than Expected in August

Turkey’s consumer price inflation accelerated in August, led by gains in restaurant and hotel costs and persistently high food inflation.

The annual inflation rate was 7.14 percent last month compared with 6.81 percent in July, Turkey’s statistics bureau said in a statement on its website Thursday. Economists had estimated the rate would rise slightly to 6.86 percent, according to a Bloomberg survey.

Central Bank Governor Erdem Basci raised his year-end inflation forecast to 6.9 percent in July from 6.8 percent in April, citing a weakening lira. The currency depreciated more than 20 percent this year and is the third-worst performing major world currency tracked by Bloomberg.

The lira weakened further after the inflation report and was trading 0.3 percent lower at 2.9490 per dollar at 10:08 a.m. in Istanbul.

Food prices rose an annual 9.71 percent in August. Restaurant and hotel prices rose more than 14 percent.