Demand Pressures All the More Evident

TURKEY - Report 03 Oct 2017 by Murat Ucer

At 0.65%, consumer price inflation came in broadly as expected in September, lifting the 12-month rate to 11.2%, up from 10.7% in August. Producer prices were broadly stable in 12-month terms, but at a highly elevated 16.3% rate (Graph 1; Table 1).

Despite a (seasonal) monthly fall, 12-month food inflation rose to 12.5% from 12%, contributing about half the increase in the 12-month rate, but the increase in non-food inflation was of a very similar magnitude, which rose from 10.6% to 11.1% (Graphs 2-3).

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