Inflation in Turkey accelerated in August and approached 59%

Turkey's annual consumer price growth rate exceeded market forecasts and reached 58.94% in August, an 8-month high, according to official data. The number rose in response to the depreciation of the lira, higher taxes and food prices. Analysts had forecast a more modest 55.9%.

Products rose in price by 72.9% in annual terms (y/y) against the July growth of 60.7% - this is the maximum for 8 months. In the healthcare sector, inflation reached 77.6% y/y (75.9% in July), in the transport sector — 70.2% y/y (43.4%). The cost of utilities increased by 25% y/y (19.3%), furniture and household appliances - by 58.9% y/y (50.1%). And core inflation in August was 64.9% y / y (56.1%) - it does not take into account the prices of products, tobacco, energy and gold.

At the same time, inflation growth on a monthly basis slowed to 9.1% in August from 9.5% in July, which was the highest value since December 2021.

Also, the Central Bank of Turkey revised its inflation forecasts: it is assumed that this year it will be 58%, and in 2024 - 33%.

At the end of August, the Turkish regulator raised the rate from 17.5% to 25%, the highest value in almost 20 years. The current high level of inflation may force the Central Bank of Turkey to again make a sharp increase in the rate.

I recently arrived from Turkey. Prices for everything are much lower than in America.

According to statistics in America this year 2023, annual inflation is 3.2%.

The highest inflation in 2023 is in Venezuela, 398% per annum.

So Türkiye is far behind Venezuela.