The FINANCIAL — Turkey’s annual inflation rate rose more than expected in August as high food costs continued to pressure consumer prices, hitting the central bank’s ability to reach its 5% target, according to Nasdaq.
The consumer-price index rose 7.14% from a year earlier and increased 0.4% from the previous month, the state statistics agency said on September 3.
August’s inflation rate was forecast to rise 0.1% on a monthly basis, bringing annual inflation to 6.9%, according to a CNBC-e survey and economist notes.
Turkey’s annual inflation rate had slowed to 6.81% in July from 7.2% in June.
The domestic producer-price index increased 6.21% compared with a year earlier and 0.98% from the previous month.
Turkey’s central bank has already raised its end-of-2015 inflation forecast to 6.9% from its previous forecast of 6.8% , while maintaining next year’s forecast at 5.5%.
Turkey’s lira erased marginal gains, dropping by 0.3% to 2.9499 Turkish Lira against the dollar at 0716 GMT, compared with 2.9413 Turkish Lira before the data.
The yield on two-year benchmark government bonds was steady at 10.99%. The main BIST-100 stock index was up 0.6%.