Turkey central bank governor says disinflation continues, urges caution

ANKARA, Sept 22 (Reuters) - Turkey's central bank governor said on Tuesday that data pointed to continued disinflation despite more challenging supply conditions, while inflation expectations warranted continued caution.

In a presentation in New York, Fatih Karahan said supply shocks had materially affected headline inflation and services inflation remained persistent, but the underlying inflation trend had recently decelerated.

Economic growth had slowed as domestic demand weakened, with high-frequency indicators pointing to further demand moderation in the third quarter, he said.

The governor said external shocks and domestic transmission channels would shape inflation going forward, while international reserve buffers remained strong.

(Reporting by Nevzat Devranoglu
Editing by Ece Toksabay)

((ece.toksabay@tr.com;))