Turkish central bank’s on inflation: Rising trend in energy prices to continue in September

In its latest assessment of the August inflation report on Tuesday, the Turkish Central Bank highlighted the following key points.

Negative path in processed food prices.

Rising trend in energy prices to continue in September.

Producer prices display strong cost pressures.

Marked worsening in main trend of core indicators.

Recall that the Turkish central bank (CBRT) promised to adjust its monetary policy stance, given significant risks to price stability. Turkey’s inflation jumped to a 15-year high of 17.9% last month, as reported by Reuters a day before.

Meanwhile, in yet another effort to support the domestic currency, the Official Gazette reported earlier today that Turkey’s export proceeds must be brought back to Turkey within 180 days and that 80% of said proceeds must be given to a bank.