March 20, 2023

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Inflation in Turkey hit a 24-year high in June

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Data from the Turkish Statistics Office showed on Monday that the inflation rate rose to a 24-year high, while producer prices continued to rise.

The consumer price index rose to 78.62 percent year-on-year in June last year from 73.5 percent in May. Inflation was the highest since 1998 last June.

The main reason for the rise in the inflation rate was the increase in transport costs by 123.37% and the prices of food and beverages by 93.93%.

On a monthly basis, consumer prices rose 4.95 percent at the end of the second quarter.

Producer prices (gross sales) rose to 138.31 in June last year, up from 13.16.2% in the previous May.

Energy sector prices rose by 31.87 percent year-on-year in June last month.

On a monthly basis, producer prices rose by 6.77 percent in June.

Energy prices rose 151.3 percent in the past month from the same month last year, Bloomberg News Agency reported, threatening to continue rising inflation in Turkey in the coming months.

For his part, Ergen Erkucel, an economist at British bank Barclays, expects Turkey’s inflation rate to reach 88% annually in October. Turkish lira price against the dollar.

Domestic Inflation Factors Combined with External Factors The International Monetary Fund has announced that Turkey will record the highest inflation rate in the world this year, behind Venezuela, Sudan and Zimbabwe.

The core inflation rate, which excludes more volatile items such as energy and food, reached 57.3 percent annually last month, compared with 56 percent in May.

“We are struggling to say that the worst is over (for inflation in Turkey) because of the continued decline in the total price index,” Ergocel said. “Other indicators point to poorer expectations for inflation.”

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