Turkish Inflation Rate Jumps to 14-1/2-Year High

Turkish consumer price inflation rose to 15.39 percent year-on-year in June 2018 from 12.15 percent in the previous month. The inflation came in way above the central bank's target of 5 percent and hit the highest level since January 2004 on the back of persistent currency weakness.

Year-on-year, main upward pressure came from: food and non-alcoholic beverages (18.89 percent vs 11.00 percent in May); transportation (24.26 percent vs 20.02 percent); housing and utilities (12.04 percent vs 11.24 percent); furnishing, household equipment, routine maintenance of the house (18.91 percent vs 16.87 percent); hotels, cafes and restaurants (13.30 percent vs 12.51 percent); clothing and footwear (11.34 percent vs 11.23 percent); alcoholic beverages and tobacco (1.06 percent vs 1.05 percent); miscellaneous goods and services (16.79 percent vs 15.38 percent); communication (4.94 percent vs -0.22 percent); recreation and culture (9.39 percent vs 6.93 percent); and health (10.83 percent vs 10.09 percent).

Meanwhile, education inflation slowed to 10.79 percent in June from 11.01 percent in May.

Annual core inflation rate, which excludes energy, food and non-alcoholic beverages, alcoholic beverages, tobacco and gold, rose to an all-time high of 14.60 percent in June from 12.64 percent in the previous month.

On a monthly basis, consumer prices jumped 2.61 percent in June, following a 1.62 percent rise in May and easily beating market expectations of 1.4 percent. The sharpest increases were recorded for food and non-alcoholic beverages (5.98 percent), communication (4.76 percent), transportation (2.66 percent), furnishing and household equipment (2.24 percent) and recreation and culture (2.16 percent).

Turkish Inflation Rate Jumps to 14-1/2-Year High

Turkish Statistical Institute | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/3/2018 8:01:11 AM