Turkish inflation dips below 12% for July year-on-year

Turkey’s consumer price inflation fell lower than expected to 11.46% in July compared to the same month last year, reversing a two-month rise in inflation according to Tuesday’s official data.

The figures boosted the Turkish Lira, trading at 6.9270 against the Dollar.

Consumer prices increased by 0.58% in July month-on-month, in contrast to a Reuters poll of a 0.9% increase.  

The Turkish transportation sector saw the biggest gain in July, increasing by 2.44%. Meanwhile, clothing and footwear prices fell by 3.48%, while food and non-alcoholic beverages dipped by 1.28%, according to data from the Turkish Statistical Institute (TUIK).

The Central Bank of Turkey propped up its year-end inflation forecast to 8.9% from 7.4% last week.

The bank’s governor Murat Uysal expressed that inflation would begin to ease from July onwards as the economy recovers from the pandemic.