Turkey's CPI falls 0.24 percent as PPI falls 2.34 percent in August

Turkish CPI hit 11.77 percent on a 12-month basis, as the PPI rate over 12 months fell to 14.67 percent, the TURKSTAT said.

 

The fall in the consumer price index is due mainly to reduced clothing and footwear prices, down 6.5 percent, as the summer sale session continues, as well as a fall of 1.55 percent in transportation prices. Housing prices however increased by 2.12 percent in August.Â

 

The significant decrease in the monthly producer price index is due mainly to a 3.14 percent fall in the manufacturing industry sector, in combination with a 2.41 percent fall in the industry sector and 1.99 percent fall in the agriculture sector.

 

Although energy prices rose 5.69 percent during the same term this increase failed to push up the producer prices index.

 

The Turkish Central Bank expects the 2008 year-end inflation rate to reach 10.6 percent, while the bank also estimates it to be down between 5.9 and 9.3 percent in 2009, and drop to a level of between 4 and 7.8 percent at the end of 2010.