Turkey Inflation Slows More Than Estimated in August on Food

  • CPI rate fell to 8.05%; Bloomberg survey forecast 8.4%
  • Food inflation slows to 6.19% from 9.69% recorded in July

Turkey’s annual consumer inflation slowed for the first time since April as increases in food moderated.

The inflation rate dropped to 8.05 percent in August from 8.79 percent a month earlier, below the median estimate of 8.4 percent in a Bloomberg survey. Food prices rose an annual 6.19 percent through August, compared with 9.69 percent a month earlier, the state statistics office said in a statement on Monday.

An index of core inflation that excludes volatile items such as food prices slowed to 8.41 percent from 8.7 percent in July. After delivering its sixth interest rate cut in as many months in August, the Turkish central bank said the core gauge would gradually slow, and that it was seeing signs of a possible slowdown in raw food prices.

The lira was little changed after the inflation data, trading 0.2 percent higher at 2.9449 per dollar at 10:02 a.m. in Istanbul.