Inflation data of Turkey for the month of August
There is no great deviation from the expectancies in the Turkish inflation data for the month of August. Data carries indications with respect to a higher inflation for the coming months of September and October. On the other hand the end year figures still remain within the Central Bank targets. There is no expectation of a serious play with the short term rates by the Central Bank until the elections are complete. The basic reason for the rise in the inflation rates is deriving from the increase of the public sector prices. The sideways movement of the exchange rates and the shrinking of the local market led to an increase of 2.3% of the core inflation. On the other hand the dipping agricultural prices that have been holding the inflation rates down since the month of May failed to effect this month. August 2002 WPI & CPI compositions are as follows :% August Year-to-date Annual Annual Average WPI 2.1 18.0 43.9 66.3 Agriculture 0.9 10.6 50.8 60.1 Mining 5.6 34.6 46.3 60.3 Manufacture 2.4 19.8 42.5 68.0 Utilities 2.3 16.7 36.6 76.6 CPI 2.2 16.1 40.2 56.6 Food 0.9 5.0 44.5 64.5 Clothing -1.5 14.3 53.2 61.2 Housing 1.1 17.2 33.9 49.0 Cons. Durables 1.1 19.5 35.6 58.9 Health 3.3 22.9 35.3 47.2 Transport 4.1 30.3 45.9 65.2 Recreational 1.5 17.4 31.6 48.0 Education 39.8 40.3 54.5 52.5 Dinning 1.3 21.8 35.2 41.8 OtherGoods&serv 0.3 23.4 41.3 58.6 Core 2.3 17.9 42.4 67.2A seasonal sharp increase in the inflation data is expected during the months of September-October, especially on major items such as agricultural prices, food, and clothing.