ISTANBUL, Sept 3 Reuters Turkey39;s annual inflation tumbled a bit more than expected to 51.97 in August, data showed on Tuesday, continuing a sharp slide due to base effects and food price relief, and keeping the central bank on track for rate cuts in the months ahead.

Monthonmonth, consumer price inflation CPI was 2.47 in August, driven by a gas price hike, but was below market expectations, according to the Turkish Statistical Institute.

In July, monthly inflation was 3.23 while the annual rate was 61.78. Disinflation began after annual CPI touched 75 in May, the highest level since late2022, as a more than yearlong monetary tightening campaign started to bring price relief.

Annual inflation was driven by education prices, which surged 121, and housing prices, which were up 101. That was offset by heavily weighted food and nonalcoholic drinks, which rose 45.

In a Reuters poll, annual inflation was forecast to fall to 52.2 in August. Monthonmonth, it was seen at 2.64. The poll forecast annual inflation of 42.95 at end2024.

The unit price of natural gas for residential use was raised by 38 in August, the first hike in almost two years, elevating the monthly CPI figure.

The central bank has hiked interest rates by 4,150 basis points since June last year, to 50, and vowed to tighten further in the case of a significant deterioration in inflation.

Yet given the disinflation seen in the last few months, coupled with a slowdown in economic growth, analysts expect a…