Inflation increases in July
Inflation came in at 47.8% in July, which was up from June’s 38.2%. The print marked the first increase since October 2022. The increase was primarily driven by soaring price pressures for food and non-alcoholic beverages, and transportation.
The trend pointed down, with annual average inflation coming in at 57.5% in July (June: 60.0%). Meanwhile, core inflation rose to 56.1% in July, from the previous month’s 47.3%.
Lastly, consumer prices rose 9.49% from the previous month in July, after the 3.92% increase logged in June. July’s figure marked the highest reading since January 2022.
Muhammet Mercan, chief economist at ING, commented:
“Overall, inflation has started rising again. This trend will likely continue until the second quarter of next year, given that all major inflation drivers are becoming less supportive with pressures from FX-related effects, administered prices and wages. The Central Bank of Turkey envisages a transition heading towards the disinflation and stabilisation period and expects inflation to peak at around 60% in the second quarter of 2024 and adopt a declining trend thereafter.”
Turkey Inflation Chart
Turkey Inflation Data
|Inflation (CPI, ann. var. %, aop)||16.3||15.2||12.3||19.6||72.3|
|Inflation (CPI, ann. var. %, eop)||20.3||11.8||14.6||36.1||64.3|
|Inflation (Core, ann. var. %, eop)||19.5||9.8||14.3||31.9||51.9|
|Inflation (PPI, ann. var. %, eop)||33.6||7.4||25.1||79.9||97.7|