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Turkey Inflation to Hit a Bump as Central Bank Tees Up Rate Cuts

A slowdown in Turkish inflation probably took a pause as the government rebuilds its coffers with higher taxes while the central bank loosens monetary policy.

The setback may prove to be little more than a blip, driven mainly by electricity price increases and the phasing out of a tax cut on automobiles. Data on Monday will show inflation accelerated for the first time in four months, climbing to an annual 16.9% in July from 15.7% in June, according to the median of 20 forecasts in a Bloomberg survey.