ISTANBUL
Türkiye’s annual consumer inflation eased to 32.11 percent in June, slightly below market expectations, as monthly price increases remained limited amid slower energy-linked pressure, official data showed on July 3.
The consumer price index (CPI) rose 0.99 percent on a monthly basis, while inflation climbed 17.76 percent from the end of last year, according to the Turkish Statistical Institute (TÜİK).
The disinflation process, which was interrupted due to rising global energy prices from supply shocks, has resumed, Finance Minister Mehmet Şimşek wrote on social media, commenting on the June inflation.
“For the remainder of the year, we expect disinflation to continue with contributions from normalization in commodity prices, rule-based pricing practices, a downward trend in rental inflation and a moderate demand outlook,” he said.
“We are sustaining our policies in line with our goal of achieving lasting price stability,” Şimşek added.
Economists had expected monthly inflation at 1.04 percent, with annual inflation projected at 32.17 percent, according to an Anadolu Agency survey.
The annual figure slowed from 32.61 percent in May, signaling a renewed moderation in headline inflation.
Housing, water, electricity, gas and other fuels posted the highest annual increase among the three largest expenditure groups, rising 45.14 percent year-on-year, down from 45.59 percent in May. The group contributed 5.92 percentage points to annual inflation.
Food and non-alcoholic beverages rose 35.45 percent annually, contributing 8.61 percentage points to the headline figure, while transportation prices increased 31.15 percent, adding 5.19 percentage points.
On a monthly basis, housing, water, electricity, gas and other fuels rose 2.30 percent, contributing 0.27 percentage points to monthly inflation.
Food and non-alcoholic beverages increased 0.17 percent month-on-month, while transportation prices edged down 0.05%, limiting upward pressure on the headline reading.
Among the 174 subclasses covered by the index, prices rose in 138, fell in 26 and remained unchanged in 10.
The special CPI aggregate excluding unprocessed food, energy, alcoholic beverages, tobacco and gold rose 1.66 percent month-on-month and 31.18 percent year-on-year in June. The 12-month average inflation rate stood at 32.03 percent.