Inflation eased from 16.7 percent in July, the Turkish Statistical Institute said in a statement on its website on Tuesday. The rate was expected to decline to 15.5 percent, according to a Reuters poll of economists published last week. Predictions ranged from 14.6 percent to 16 percent.
Turkey’s government is seeking to slow price increases to help reinvigorate consumer spending and encourage banks to reduce interest rates on loans. The economy entered a severe downturn last summer after a currency crisis ripped through financial markets.
The central bank lowered its benchmark interest rate to 19.75 percent in July from a previous 24 percent. It is due to meet to decide on interest rates again on Sept. 12.
Prices increased 0.86 percent month-on-month, the institute said. The price of transportation, food and non-alcoholic beverages, and clothing decreased from July, it said.
The lira rose 0.2 percent to 5.79 per dollar at 10:27 a.m. in Istanbul.
Producer-price inflation slowed to an annual 13.5 percent from 21.7 percent. The reading was the lowest since January last year. Prices dropped 0.59 percent month-on-month, the institute said.