Istanbul's August inflation figures released: Housing prices rose by 7 percent, food prices by half a point

Retail inflation in Istanbul fell by more than 10 points in August, signaling that prices across the country have begun to ease. According to data released by the Istanbul Chamber of Commerce on Sunday, prices in Turkey's commercial capital rose by 61.6 percent on an annual basis in August, compared to a 72.8 percent increase the previous month. The monthly increase was 1.73 percent, compared to 4.21 percent in July. The Turkish Statistical Institute will announce the August inflation data on September 3. According to the median estimate in a Bloomberg survey, consumer prices are expected to rise by 51.9 percent annually, compared to 61.8 percent in July.

'TODAY'S FIGURE IS GOOD NEWS'

According to Özlem Derici Şengül, founder of Istanbul-based Spinn Consulting, the slowdown in Istanbul's monthly inflation figure could be a positive signal for the nationwide figure, which is currently expected to be around 2.3 percent. Şengül said, “Considering that monthly Istanbul inflation has been above national data for the last three months, today's figure is good news.” She added that the annual figure shows that national inflation falling below 50 percent after August is “on the horizon.”

'HOUSING PRICES ROSE BY 7 PERCENT, FOOD PRICES BY HALF A POINT'

In Istanbul, housing-related prices rose by approximately 7.1 percent in August compared to the previous month, while food prices increased by about half a point, and clothing prices fell by 3.7 percent. Wholesale prices rose by approximately 1 percent on a monthly basis and by approximately 46.9 percent on an annual basis. The Central Bank stated in a statement on August 27 that it expects a slowdown in monthly inflation due to the impact of the decline in food prices. The bank's benchmark interest rate remained at 50 percent for the fifth consecutive month in August. Officials expect inflation to close the year at the 38 percent level.

News Source: 12punto