Overview

• The August reading came in below the 0.4% expected by economists polled by Reuters.
• Headline CPI-All Items eased to 0.5% year on year from 0.6% in July.
• Services inflation cooled to 0.4% as costs for holiday travel, airfares and inpatient services fell.
• Electricity and gas inflation declined further to -5.7%, while private transport inflation rose to 2.4% on higher car prices and a smaller drop in petrol prices.
• MTI projects 2025 GDP growth at 1.5% to 2.5%, with officials cautioning that energy or shipping shocks and softer demand could alter the outlook.