Inflation in Turkey in June slowed to the lowest since December 2021

According to the Statistical Institute of Turkey (Turkstat), inflation in the country in June continued to slow down for the eighth month in a row, reaching the lowest level since December 2021 – 38.2% in annual terms. In May, consumer prices rose by 39.6% compared to the previous year.

A slowdown in the rate of price growth was observed in various areas. The increase in prices for utilities in June slowed to 14.8% from the previous 20.7%, and for transport services – to 21% from the previous 23.7%. The growth rates of prices for furniture, household appliances and medical services also decreased.

However, the cost of food continues to increase and in June it reached a record level for the last three months, amounting to 54% (against 52.5% in May).

Core inflation, which does not take into account the prices of food, energy, tobacco products and gold, also accelerated in June to 47.3% compared to the previous 46.6%.

Last month, consumer prices in Turkey increased by 3.92% compared to May, which is the highest value in the last five months. In May, their growth was only 0.04%.

Recall that the Central Bank of Turkey in June raised its key interest rate for the first time in two years. The rate on seven-day REPO transactions was increased by 6.5 percentage points to 15%, which is the highest level since 2011.