Market players expect both consumer and producer prices to rise at a moderate pace in August, lowering the annual inflation due to the slowdown in oil prices, recent polls showed in Turkey.


The Turkish Statistical Institute (TURKSTAT) will announce the inflation figures for August at 5 p.m. (GMT 1400) on Wednesday.

According to a Reuters poll, Turkey's consumer price index (CPI) is expected to rise 0.3 percent month-on-month in August for a year-on-year rise of 10.72 percent.

Broadcaster CNBC-e said the market consensus for CPI is 0.2 percent and the analysts expect no change in PPI.

Bloomberg News’ poll, however, anticipated a more pessimistic inflation outlook for August. Its poll said the annual CPI will increase to 12.3 percent, bringing the inflation to four-year high.

The annual inflation in consumer prices reached 12.06 percent in July due to soaring energy prices and the base effect from food prices.

The hike in gas prices, 16.88 percent for households and 18.77 percent for factories, in August is seen as a negative factor on inflation.

The Turkish Central Bank said the slowdown in inflation will continue in the coming months due to easing food and energy prices despite the negative effects of the factors such as the start of Ramadan, the holy month for Muslims in which the food prices increase, and the start of the new school year in September.

Oil prices have dropped some 25 percent from a record $147.27 a barrel reached on July 11.

The latest inflation figures in Turkey's largest city, Istanbul also supports a likely increase at inflation in August. Retail price inflation in this city increased 1.58 percent month-on-month in this month, bringing annual inflation to 15.74 percent.

Consumer prices rose 0.58 percent month-on-month in July to increase 12.06 percent from a year earlier. The producer price index rose 1.25 percent and was up 18.41 percent annually.