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Turkish December inflation rate at 4-month low of 20.3%

Staff Writer |
The Turkish consumer price inflation eased to 20.30 percent year-on-year in December 2018 from 21.62 percent in the prior month, and slightly below market expectations of 20.52 percent.

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It was the lowest inflation rate since August, mainly due to a softer rise in prices of food, housing, and transport.

Inflation eased for: food and non-alcoholic beverages (25.11 percent vs 25.66 percent in November); housing and utilities (23.73 percent vs 24.76 percent); transportation (15.97 percent vs 21.03 percent); furnishing and household equipment (31.36 percent vs 32.73 percent); hotels, cafes and restaurants (19.81 percent vs 20.01 percent); clothing and footwear (14.83 percent vs 16.86 percent).

Meanwhile, prices went up faster for both miscellaneous goods and services (28.80 percent vs 27.87 percent), and alcoholic beverages and tobacco (2.39 percent vs 2.23 percent).

Annual core inflation rate, which excludes energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, declined to 19.53 percent in December from 20.72 percent in the previous month.

On a monthly basis, consumer prices dropped 0.40 percent in December, following a 1.44 percent fall in November and compared to market expectations of a 0.23 percent decrease.

This was the second straight monthly decline in consumer prices, due to decreases in costs of housing (-0.06 percent), transportation (-2.56 percent); clothing and footwear (-4.08 percent), recreation and culture (-0.25 percent); and communication (-0.11 percent).

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