Turkish annual July inflation dips below 12%, lira firms

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ISTANBUL – Turkey’s consumer price inflation fell to a lower-than-expected 11.76% year-on-year in July,official data showed on Tuesday, reversing two months of rising inflation as the economy continued to emerge from lockdown.

FILE PHOTO: People shop at a food market in Istanbul, Turkey, February 11, 2019. REUTERS/Murad Sezer

The figures boosted the lira, which firmed to 6.9270 against the dollar. The currency weakened last week to 7 on lingering worries over depleted FX reserves and costly state interventions to steady the currency.

 

Month-on-month, consumer prices rose 0.58% in July, the Turkish Statistical Institute (TUIK) said, compared to a Reuters poll forecast of 0.9%. The poll saw annual inflation at 12.10% in July, after it rose to 12.62% in June.

The largest consumer price rises in July were in the transportation sector, with a rise of 2.44%, while clothing and footwear prices dropped 3.48%. Key food and non-alcoholic drinks prices dropped 1.28%, the TUIK data showed.

 

Economists had cited coronavirus-related disruptions to production as contributing to the expected dip in year-over-year price rises.

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