UPDATE - Turkey: Annual inflation at 11.77% in August

UPDATES WITH MORE DETAILS AND BACKGROUND

By Tuba Sahin

ANKARA (AA) – Turkey saw an annual hike of 11.77% in consumer prices in August, the country's statistical authority announced on Thursday.

Last month, the annual inflation went up 0.01 percentage points from 11.76% in July.

The highest price increase on a yearly basis was recorded in miscellaneous goods and services with 26.99% in August, according to TurkStat data.

It was followed by health at 14.68% and food and non-alcoholic beverages at 13.51%.

Last week, an Anadolu Agency survey showed that a group of 18 economists forecast an average 11.88% annual climb in consumer prices.

The economists also forecast that Turkey's year-end annual inflation would be 10.97% on average, with the lowest estimate at 9.80%, and the highest at 13.74%.

TurkStat said consumer prices index surged 0.86% month-on-month in August.

Miscellaneous goods and services prices again posted the highest monthly rise with 5.09%, TurkStat said, adding: "The highest monthly decrease was 2.11% in clothing and footwear."

"In August 2020 within average prices of 418 items in the index, the average prices of 92 items decreased and the average prices of 53 items remained unchanged while the average prices of 273 items increased," the institute added.

According to the official figures, the 12-month average hike in consumer prices was 11.27% as of this August.

Over the last decade, the annual inflation saw its lowest level at 3.99% in March 2011, while it peaked at 25.24% in October 2018.

Under Turkey's new economic program announced by the government last September, the country's inflation rate target is 8.5% this year. The country's Central Bank forecast year-end inflation to hit 8.9% in 2020.