Turkey: Inflation comes in at highest level since our records began
Inflation rose to 80.2% in August, above July’s 79.6%. August’s reading marked the highest inflation rate since our current records began. The print was driven by a steep rise in transportation, food and non-alcoholic beverages, and alcoholic beverages and tobacco prices.
Meanwhile, the trend pointed up, with annual average inflation coming in at 54.7% in August (July: 49.6%). Finally, core inflation rose to 66.1% in August, from the previous month’s 61.7%.
Consumer prices increased 1.46% from the previous month in August, moderating from July’s 2.37% rise. August’s result marked the weakest reading since September 2021.
Goldman Sach’s Clemens Grafe added:
“Going forward, we expect inflation to peak at around +90%yoy in the October-November period and only fall to +75%yoy at year-end with the help of base effects. The risk to our forecasts is significantly to the upside considering worsening expectations, rising FX cost, successive wage hikes and a recent pickup in loan growth momentum.”
Goldman Sach’s Clemens Grafe added:
“Going forward, we expect inflation to peak at around +90%yoy in the October-November period and only fall to +75%yoy at year-end with the help of base effects. The risk to our forecasts is significantly to the upside considering worsening expectations, rising FX cost, successive wage hikes and a recent pickup in loan growth momentum.”