Türkiye: Inflation slows to 71.6% year-on-year in June

Türkiye: Inflation slows to 71.6% year-on-year in June
Türkiye: Inflation slows to 71.6% year-on-year in June

Istanbul (awp/afp) – Inflation slowed to 71.6% over one year in June in Turkey, against 75.45% in May, after months of acceleration, according to official figures published Wednesday.

The increase in consumer prices, fueled by the depreciation of the Turkish lira, stood at 1.64% over one month.

The surge in prices particularly concerns health (+78.5% over twelve months), housing (+94.7%), hotels and restaurants (+90.7%) and education (+107.1%), according to the Turkish statistical institute.

“The disinflation process has begun,” Turkish Economy Minister Mehmet Simsek rejoiced on the social network X.

According to the Turkish central bank’s forecast, inflation will reach 43.5% by the end of 2024 and 25.5% by the end of 2025. The latter had increased from 38.2% in June 2023 to 75.45% in May, accelerating almost continuously.

The price surge is seen by analysts as the main reason for the debacle of President Recep Tayyip Erdogan’s Islamist-conservative Justice and Development Party (AKP) in local elections held at the end of March.

In an attempt to break the inflationary spiral, the Turkish government did not raise the minimum wage on July 1, to around $520, as it had done in the previous two years.

Official inflation figures are disputed by independent economists from the Inflation Research Group (Enag), who calculate the rise in consumer prices at 113.1% year-on-year.

af/ol

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