Turkey's inflation figures hit the brakes

Turkey's inflation figures indicated a regression in August in opposition to market expectations. Turkey's consumer price index (CPI) recorded a decline of 0.44 percent and producer price index (PPI) 0.75 percent last month. Inflation, which rose in May and June with the increase in exchange rates, regressed in line with the slowdown in exchange rates. In the first eight months of the year, CPI amounted to 5.3 percent while PPI was 11.80 percent. Year-on-year CPI decreased to 10.26 percent while year-on-year PPI fell to 12.32 percent. On the CPI front, the 1.21 percent decline in food and non-alcoholic beverage prices and the 6.92 percent fall in clothing and footwear prices pulled the headline figure downwards. The 1.28 percent decline in agricultural sector and the 0.69 percent fall in manufacturing sector contributed to the PPI.