{"id":37271,"date":"2018-09-03T07:11:19","date_gmt":"2018-09-03T12:11:19","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37271"},"modified":"2018-09-03T07:11:19","modified_gmt":"2018-09-03T12:11:19","slug":"turkey-inflation-soars-to-15-year-high-as-central-bank-pledges-imminent-rate-hike","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37271","title":{"rendered":"Turkey Inflation Soars To 15 Year High As Central Bank Pledges Imminent Rate Hike"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-09-03\/turkey-inflation-soars-15-year-high-central-bank-pledges-imminent-rate-hike\"><span class=\"field field--name-title field--type-string field--label-hidden\">Turkey Inflation Soars To 15 Year High As Central Bank Pledges Imminent Rate Hike<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1156\" data-gtm-vis-first-on-screen-2077925_22=\"1156\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<div class=\"a2a_kit a2a_kit_size_32 a2a_default_style\" data-a2a-icon-color=\"#222\">\n<div>With the Turkish lira plunging, it was not exactly a surprise that Turkish inflation data reported today came even hotter than expected, with inflation jumping a surprising 17.9% Y\/Y in August, up from 15.9% and above the 17.6% consensus, with monthly inflation rising 2.3%. This was the highest increase in annual inflation going back to 2003.<\/div>\n<\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/turkey%20inflation%20sept%202018.jpg?itok=zqHBhMsd\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/turkey%20inflation%20sept%202018.jpg?itok=zqHBhMsd\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/turkey%20inflation%20sept%202018.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/turkey%20inflation%20sept%202018.jpg?itok=zqHBhMsd 1x\" alt=\"\" width=\"500\" height=\"281\" data-entity-type=\"file\" data-entity-uuid=\"1a86c470-1267-4ccf-b1e9-1e9c4e78ae07\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>Core inflation increased from +15.1% Y\/Y in July to +17.2%, above the +16.0%expected, and contributed 1.2% to the overall 2.1% rise in the headline figure and more than fully accounted for the surprise in headline inflation compared to forecasts. Following the hike to electricity and natural gas prices, energy inflation contributed another 0.5%. The rest of the increase in headline inflation was due to higher gold and food prices.<\/p>\n<p>As shown in the Goldman chart below, inflation in nonfood goods and energy categories were the main drivers behind the rise in the headline figure.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/turkey%20inflation%20gs.png?itok=Px5xwle5\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/turkey%20inflation%20gs.png?itok=Px5xwle5\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/turkey%20inflation%20gs.png\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/turkey%20inflation%20gs.png?itok=Px5xwle5 1x\" alt=\"\" width=\"500\" height=\"297\" data-entity-type=\"file\" data-entity-uuid=\"11e8aa7d-0f7d-459c-8233-8ca1a5c58dd4\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>Looking ahead, Bloomberg economist Ziad Daoud said that Turkey\u2019s year-on-year inflation is likely to jump to 19.1% in August, showing the initial economic impact of the recent meltdown in the lira.<\/p>\n<p>Meanwhile, producer prices soared 32.1%, Turkstat reported on Monday: the PPI&#8217;s nearly double increase vs CPI confirmed that companies are finding it next to impossible to pass on much of their added costs to end-users just yet, but eventually they will have little choice according to Bloomberg.<\/p>\n<p>According to Bluebay Asset Management strategist Tim Ash the inflation data showed consumer demand collapsing, and it could weaken further if borrowing costs are raised. Still, <strong>&#8220;if they don\u2019t hike again by something significant, the lira will be left exposed again<\/strong>,\u201d Ash told <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-09-03\/turkish-inflation-accelerates-more-than-expected-on-weak-lira\">Bloomberg<\/a>. \u201cThey need to do whatever they need to do short-term to hold the lira, and that means hiking rates.&#8221;<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Turkey Inflation Soars To 15 Year High As Central Bank Pledges Imminent Rate Hike With the Turkish lira plunging, it was not exactly a surprise that Turkish inflation data reported today came even hotter than expected, with inflation jumping a surprising 17.9% Y\/Y in August, up from 15.9% and above the 17.6% consensus, with monthly [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[426,818,8280,4318],"class_list":["post-37271","post","type-post","status-publish","format-standard","hentry","category-economics","tag-inflation","tag-turkey","tag-turkish-lira","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37271"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37271\/revisions"}],"predecessor-version":[{"id":37272,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37271\/revisions\/37272"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}