Turkey Inflation Slows to 31.5% in August

Annual consumer price growth in Turkey slowed to 31.5% in August, down from 31.8% in July. Data released Thursday by the Turkish Statistical Institute showed the figure fell slightly below the 31.6% median estimate from economists, marking the third consecutive month of easing inflation.

The decline has increased speculation that the Monetary Policy Committee may implement an interest-rate cut during its meeting on September 10. However, some analysts suggest the central bank might hold rates due to energy-price pressures and sticky core inflation. The Central Bank of the Republic of Türkiye currently targets year-end inflation of 28%.

External economic pressures persist as conflict between the United States and Iran has pushed Brent crude oil prices up more than 7% this week to approximately $95 a barrel. Fatih Karahan, Governor of the Central Bank of the Republic of Turkey, stated that cooling demand has helped balance inflationary risks related to the Iran war, though food and transportation prices remain high.