Turkey: Inflation drops in July
Latest reading: Inflation fell to 33.5% in July, below June’s 35.0%. The reading came in below market expectations. Looking at the details of the release, prices for food and non-alcoholic beverages, for housing and utilities and for transportation grew at a slower pace in July.
Accordingly, the trend pointed down, with annual average inflation coming in at 41.1% in July (June: 43.2%). Meanwhile, core inflation fell to 34.7% in July from June’s 35.6%.
Finally, consumer prices rose 2.06% from the previous month in July, picking up from June’s 1.37% increase.
Outlook: Our panelists expect inflation to continue easing the coming quarters thanks to a high base effect and past interest rate hikes.
Panelist insight: ING’s Muhammet Mercan commented:
“Provided there are no unforeseen disruptions in exchange rates, wages, regulated prices, or commodity markets for the remainder of the year, we expect the annual inflation rate to dip below 30% by the end of 2025.”