Turkey inflation falls to 33.52% in July, below forecast
Month-on-month, opens new tab, inflation was 2.06%, the Turkish Statistical Institute said, below forecasts. In June, CPI inflation was 1.37% monthly and 35.05% annually.
In a Reuters poll, the monthly inflation rate was expected to be 2.4% in July, with the annual rate seen at 34.05%.
On July 24, the central bank cut its policy rate by 300 basis points and relaunched an easing cycle, while saying that leading indicators suggest a temporary rise in monthly inflation in July due to month-specific factors.
A mid-year hike in fuel and tobacco prices as well as a rise in natural gas prices had been expected to drive monthly inflation. Transport prices rose 2.89% month-on-month and alcoholic drinks and tobacco prices rose 5.69%. Housing prices were up 5.78%.
The domestic producer price index rose 1.73% month-on-month in July for an annual rise of 24.19%, the data showed.
Inflation is seen dropping to 29.75% at the end of this year according to the poll median, higher than the central bank forecast of 24%.
Economy officials say they are confident that inflation to fall to between 24-29% central bank forecast range at the end of the year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
21 minutes ago
- Telegraph
Bank ‘must cut rates six times' over next year to boost ailing economy
Andrew Bailey must slash interest rates six times over the next year to bolster flagging growth, economists have warned. The Bank of England Governor and his colleagues on the Monetary Policy Committee (MPC) are expected to cut borrowing costs from 4.25pc to 4pc this Thursday. But a growing cohort of economists predict Bank officials will be forced to go much further over the next 12 months. Six cuts would take the base rate to 2.75pc next year – the lowest level since late 2022. Peder Beck-Friis, an economist at Pimco, an investment company, said higher taxes, slower growth and the weakening jobs market will all push the Bank to cut rates further next year. 'While inflation has been surprisingly firm, we see good reasons to expect a slowdown. Regulatory price hikes, including in employment taxes, have pushed prices up, but wage growth is softening and the labour market is weakening,' he said. Companies are passing the £25bn increase in employers' National Insurance contributions on to customers, but 'once this tax shock fades, we expect inflation to ease, as seen in other developed countries'. 'We expect the Bank to accelerate rate cuts later this year, with the policy rate settling near 2.75pc next year,' he said. Michel Nies, from Citi, predicts rate cuts in August and November before an acceleration from December in the wake of 'very likely tax increases in the autumn Budget', taking the base rate to 2.75pc. He cites the weakening jobs market as the critical factor. The economy has lost 178,000 employees on payroll over the past year. Businesses in particular are taking a beating: 'The divergence between public and private sector employment growth continues to widen with the former still masking a sustained contraction in the latter,' Mr Nies said. Bruna Skarica, at Morgan Stanley, also expects cuts to 2.75pc because unemployment has risen to 4.7pc, the highest rate in four years. 'The build-up of slack in the labour market ... can only result in pay and price disinflation over time,' she said. 'The laws of economic gravity can be delayed, but not denied.' These economists remain in the minority, and even this week's anticipated rate cut will not be entirely uncontroversial. Policymakers are cutting interest rates even though inflation, at 3.6pc and rising, is well above its 2pc target. However, monetary policy takes as long as two years to feed through to consumer prices, meaning this week's rate decision will only fully pass through to inflation in mid-2027 - and will have little effect on the rise in living costs this year. Jack Meaning, a former Bank of England economist now at Barclays, forecasts a three-way split on the MPC. He anticipates that two policymakers will vote to hold rates, two for a double cut to 3.75pc, and the majority of five backing a move to 4pc. 'Despite these divergent views on both sides, we think the centre of the committee, and ultimately the decisive bloc, will continue on a gradual and careful quarterly rate cutting path, until it reaches 3.5pc in February 2026,' he said. The most recent three-way split came in May, when external MPC members Swati Dhingra and Alan Taylor voted for a half percentage point rate cut to 4pc.
Reuters
21 minutes ago
- Reuters
Netherlands to start NATO's new Ukraine weapons finance scheme with $578 mln payment
AMSTERDAM, Aug 4 (Reuters) - The Netherlands will be the first contributor to NATO's new "Priority Ukraine Requirements List" (PURL) financing mechanism for Ukraine weapons with a 500 million euros ($578 million) payment, the Dutch defence ministry said on Monday. U.S. President Donald Trump said last month the U.S. would supply weapons to Ukraine, paid for by European allies, but did not provide details on how this would work. Reuters reported on Friday that NATO countries, Ukraine, and the U.S. were developing a new Ukraine weapons financing mechanism. ($1 = 0.8649 euros)
Reuters
25 minutes ago
- Reuters
Cold weather and scant rains worry Ivory Coast cocoa farmers
ABIDJAN, Aug 4 (Reuters) - A persistent cold spell across most of Ivory Coast's cocoa-growing regions could jeopardize the development of the next October-to-March main crop, farmers warned on Monday, saying plantations need more sunshine and rain. The world's largest cocoa producer is in the middle of the rainy season, which runs officially from April to mid-November. Rains are typically abundant during this period, but last week were well below average. Farmers told Reuters the crop was developing well at the moment, cautioning that cold weather could prevent trees from reaching their maximum potential. Growers said there was a good mix of small, average and big, almost ripe pods on trees. In some regions, farmers said bean supply was very tight, but that availability would rise from mid-August. Without more rainfall and sunshine in the coming weeks, farmers said some young pods, known as cherelles, could fall from branches, affecting the crop outlook. "Plantations need more rain and sunshine," said Kouassi Kouame, who farms near the western region of Soubre, where just 1.6 millimetres (mm) of rain fell last week, 10.4 mm below the five-year average. Similar comments were reported in the southern regions of Agboville and Divo, and in the eastern region of Abengourou, where rains were well below average. Farmers there said in the next two weeks they were expecting more rain and sunshine that would boost the crop. In the west-central region of Daloa, in the central regions of Bongouanou and Yamoussoukro, where rains were also well below average, farmers said the crop was developing well for now. Farmers added that some growers had started to stockpile the few harvested beans they had, hoping to hold onto them until early October when a new marketing price will be set. They expect the price to be significantly higher than the current 2,200 CFA francs ($3.90) per kg. Farmers said the government would opt for a big price hike in order to encourage growers to vote for it in October's presidential election. "The quantities coming from the bush will increase this month. But very few farmers will want to sell," said Celestin Goli, who farms near Daloa, where 3.4 mm of rain fell last week, 16.1 mm below the average. Weekly average temperatures across Ivory Coast last week ranged from 24.3 degrees Celsius (75 degrees Fahrenheit) to 27.9 C (82 F). ($1 = 564.0000 CFA francs)
