Annual CPI inflation up to double-digit levels
Monthly CPI nflat on came n at 0.52% for August, above market expectat ons. Th s was the h ghest August ncrease s nce 2012. Annual CPI nflat on returned to double-d g t levels n August, stand ng at 10.7%. Cloth ng and food pr ces cont nued to pull nflat on down. As was the case n both June and July, cloth ng and food pr ces became the ma n expend ture groups that pulled nflat on down n August. Cloth ng and footwear pr ces contracted by 3.1% compared to the prev ous month and l m ted the r se n CPI by 23 bas s po nts.
The ncrease n CPI n August was l m ted by seasonal products. Indeed, exclud ng seasonal products, monthly CPI becomes 1.05%. In th s per od, core CPI, wh ch s the Central Bank of Turkey’s preferred ma n core nflat on nd cator, recorded an annual r se of 10.16%, cont nu ng to move upward as n July. On the other hand, Domest c Producer Pr ce Index (D-PPI) rema ned elevated post ng a monthly r se of 0.85%. Annual D-PPI nflat on also surged to 16.3%, mark ng the h ghest f gure n the last four months.