(Bloomberg) -- Istanbul’s retail inflation declined by more than 10 percentage points in August, likely heralding an easing in nationwide prices.
Prices in the Turkish commercial capital rose 61.6% on an annual basis in August, compared with a 72.8% increase the previous month, according to data published Sunday by the Istanbul Chamber of Commerce. The monthly increase was 1.73%, compared with 4.21% in July.
Turkey’s statistics office will publish nationwide inflation data for August on Sept. 3. Consumer prices are expected to have increased by an annual 51.9%, according to the median estimate in a Bloomberg survey, compared with 61.8% in July.
The slowing of the monthly inflation figure in Istanbul could be a positive signal for the nationwide number, currently expected at about 2.3%, according to Ozlem Derici Sengul, founder of Istanbul-based Spinn Consulting.
“Given that monthly Istanbul inflation was above the national data for the past three months, today’s figure is good news,” she said. The annual figure, meanwhile, shows national inflation below 50% “is on the horizon” after August, she said.
In Istanbul, housing-related prices rose about 7.1% in August from the previous month, while food prices increased by about half a percentage point and clothing declined 3.7%. Wholesale prices were up almost 1% monthly and about 46.9% on an annual basis.
Turkish Firms Face ‘Groundswell’ of Problems as 50% Rates Bite
The central bank on Aug. 27 said it expects a slowdown in monthly inflation, led by the lower food prices. The bank’s benchmark interest rate remained at 50% in August for the fifth straight month. Policymakers expect inflation to close the year at 38%.
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