Turkish inflation eased further to 32.95% in August, official data showed today, fuelling expectations that the central bank will cut interest rates next week.
The annual inflation rate fell from 33.52% in July, but analysts surveyed by Bloomberg had forecast consumer price increases to slow even further to 32.6% in August.
On a monthly basis, consumer prices rose by 2.04% percent in August, mainly driven by food, transportation and housing costs.
Consumers still face steep prices in Turkey, with the annual inflation rate for food and non-alcoholic beverages rising 33.3%.
Prices for education surged 60.9% while housing increased 53.3% and transport 24.9%.
Overall annual inflation, however, is at its lowest level since the end of 2021.
It had exceeded 75% in May 2024 before beginning to decline.
The slowdown led the Turkish central bank to gradually lower its main policy rate from 50% to 43% between December and July, and it is expected to cut it again next week.
The official inflation figures are disputed by independent economists from the Inflation Research Group ENAG who estimate that consumer prices rose by 65.5% year-on-year in August.
