ISTANBUL (Reuters) -Turkish annual consumer price inflation dipped more than expected to 33.52% in July, official data showed on Monday, sustaining a downward trend despite strong rises in housing and education sector prices.
Month-on-month, inflation was 2.06%, the Turkish Statistical Institute said, below forecasts. In June, CPI inflation was 1.37% monthly and 35.05% annually.
In a Reuters poll, the monthly inflation rate was expected to be 2.4% in July, with the annual rate seen at 34.05%.
On July
24, the central bank cut its policy rate by 300 basis points and relaunched an easing cycle, while saying that leading indicators suggest a temporary rise in monthly inflation in July due to month-specific factors.
A mid-year hike in fuel and tobacco prices as well as a rise in natural gas prices had been expected to drive monthly inflation. Transport prices rose 2.89% month-on-month and alcoholic drinks and tobacco prices rose 5.69%. Housing prices were up 5.78%.
The domestic producer price index rose 1.73% month-on-month in July for an annual rise of 24.19%, the data showed.
Inflation is seen dropping to 29.75% at the end of this year according to the poll median, higher than the central bank forecast of 24%.
Economy officials say they are confident that inflation to fall to between 24-29% central bank forecast range at the end of the year.
(Reporting by Miraç Eren Dereli; Editing by Daren Butler)
