Turkey Annual Inflation Rate at 1-Year Low in June

Turkey's annual inflation rate declined to 15.72 percent in June 2019 from 18.71 percent in the previous month and slightly below market expectations of 15.74 percent. It was the lowest inflation rate since June last year, mainly due to a slowdown in cost of food & non-alcoholic beverages, transportation and housing & utilities.

Prices eased for food and non-alcoholic beverages (19.20 percent from 28.44 percent in May); housing, water, electricity, gas and other fuels (13.80 percent from 14.68 percent); transportation (10 percent from 12.40 percent); furnishing, household equipment, routine maintenance of the house (22.51 percent from 24.54 percent); and clothing and footwear (4.33 percent from 4.78 percent). On the other hand, cost went up further for hotels, cafes and restaurants (20.84 percent from 19.77 percent); miscellaneous goods and services (26.88 percent from 26.75 percent); and alcoholic beverages and tobacco (19.24 percent from 19.22 percent).

Annual core inflation rate, which excludes energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, slowed to 14.86 percent in June, the lowest since last July, from 15.87 percent in May.

On a monthly basis, consumer prices advanced 0.03 percent, asfter a 0.95 percent rise in May and below market forecasts of 0.05 percent. The sharpest increases were recorded for hotels, cafes and restaurants (2.65 percent); health (2.58 percent), education (2.40 percent), miscellaneous goods and services (1.86 percent), and transportation (0.47 percent). In contrast, prices declined for food and non-alcoholic beverages (-1.65 percent), clothing and footwear (-1.57 percent), communication (-0.34 percent), and recreation and culture (-0.04 percent).

Turkey Annual Inflation Rate at 1-Year Low in June

Turkish Statistical Institute | Stefanie Moya | stefanie.moya@tradingeconomics.com
7/3/2019 9:43:19 AM