Turkish inflation accelerates more than expected on weak lira

Turkey’s consumer inflation accelerated more than expected last month as a tanking currency boosted prices.

The annual inflation rate rose to 17.9% in August from 15.9% the previous month, exceeding the median estimate of 17.6% in a Bloomberg survey.

Turkey’s state statistics office said the monthly inflation was 2.3%, compared with 1.84% in a separate survey. The lira was little changed after the report.

Monday’s report shows the currency’s dive is taking a toll on consumers who are reeling from the highest inflation in 15 years. The Turkish central bank, which held its rates at its last meeting in June, is raising the cost of lending through fringe tools ahead of next week’s meeting.

Below are some of the highlights from Monday’s inflation report:

• Energy index, which tracks the price of power and refined oil products, rose 21.34% from the previous year, compared with 17.5% in July.

• Core inflation, which excludes volatile items such as gold and energy, accelerated to 17.22%, compared with 15.1% in July.

• Food prices, which makes up nearly a quarter of the consumer inflation basket, rose an annual 19.75%, up from 19.4% in July

The currency was trading 1.7% lower at 6.6505 per dollar at 10:04 in Istanbul.