TURKEY’S inflation rate rose above expectations again by climbing to 9.54 percent in August, dashing hopes of attaining its expected year-end target. 

According to figures announced by the Turkish Statistical Institute (TÜİK), consumer prices rose by 0.09 percent compared to the previous month, exceeding forecasts by analysts who expected the rate to decline from 0.03 to 0.1 percent. 

With the continuing rise in prices, the index reached 9.54 percent on annual basis for the month, hitting the highest level in three months and marking the fifth consecutive month that the rate has remained above 9 percent.

“The upward risks to inflation continue to be pronounced,” said HSBC Bank strategist Ali Çakıroğlu, pointing to an increase in taxi rates from September as one source of upward pressure.

“We see food group price rises were significant in the CPI inflation,” he said. Consumer food and non-alcoholic drinks prices rose 0.89 percent on the month, the data showed.

August’s inflation rate has supported growing skepticism regarding the Central Bank’s hopes of achieving its year-end target of 7.6 percent.

On Sept. 2, Deputy Prime Minister Ali Babacan said it was unlikely that Turkey’s year-end inflation rate would hit double digits, but he acknowledged the figure may end up above the government’s target of 7 percent.

Babacan blamed high food prices caused by the recent severe drought in the country for the higher-than-expected inflation.