Financial News: Turkish Inflation Exceeds 75%

Turkish Inflation Exceeds 75%

06/03/2024 - 09:41:00 (RTTNews)

(RTTNews) - Turkey's consumer price inflation exceeded 75 percent in May, adding uncertainty to the disinflation process, official data showed on Monday. Consumer price inflation accelerated to 75.45 percent in May from 69.8 percent in April, the Turkish Statistical Institute reported. This was the highest rate since November 2022, when the rate was 84.39 percent.

On a monthly basis, consumer prices gained 3.37 percent in May compared to a marginal 0.04 percent rise in the same period last year.

Data showed that education with 104.8 percent increase was the main group which showed the biggest annual growth. Clothing and footwear with 50.85 percent rise was the main group that indicated the lowest annual increase.

Another data from the statistical office showed that producer prices posted an annual increase of 57.68 percent, faster than April's 55.66 percent. Month-on-month, the producer price index gained 1.96 percent.

At the May monetary policy meeting, Central Bank of the Republic of Turkey decided to maintain the policy rate at 50.0 percent after cutting the rate by a sharp 500 basis points in March.

ING economist said Muhammet Mercan said annual inflation is likely to drop rapidly with the large base and is likely to be in the central bank's forecast range of 34 percent to 42 percent at the end of 2024, but close to the upper band during the remainder of this year.

The economist noted that the deterioration in pricing behavior and the rigidity in services inflation will remain as challenges.

Capital Economics' economist Liam Peach said the pace of disinflation in the second half of the year is looking a bit more uncertain. The economist expects the central bank will wait until next year.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Atlanta Fed Sees U.S. Q3 GDP Growth At 2.8% (07 hr(s), 46 min(s), 05 sec(s) ago)
(RTTNews) - The Atlanta Fed released its initial estimate for the third quarter growth based on it ...Full Story»

U.S. Consumer Sentiment Index Dips Slightly Less Than Previously Estimated In July (09 hr(s), 37 min(s), 05 sec(s) ago)
(RTTNews) - The University of Michigan released revised data on Friday showing consumer sentiment ...Full Story»

U.S. Consumer Prices Inch Up 0.1% In June, In Line With Estimates (10 hr(s), 34 min(s), 05 sec(s) ago)
(RTTNews) - Consumer prices in the U.S. crept up in line with economist estimates in the month of ...Full Story»

Spain Jobless Rate Lowest Since 2008 (10 hr(s), 48 min(s), 05 sec(s) ago)
(RTTNews) - Spain's unemployment rate fell to the lowest level in nearly 16 years in the secon ...Full Story»

Denmark Retail Sales Fall 0.1% (10 hr(s), 56 min(s), 05 sec(s) ago)
(RTTNews) - Danish retail sales decreased slightly in June after recovering in the previous month, ...Full Story»

Hungary Jobless Rate Falls To 4.3% (11 hr(s), 12 min(s), 05 sec(s) ago)
(RTTNews) - Hungary's unemployment rate decreased slightly during the April-June period, data ...Full Story»

U.S. PCE Price Index Inches Higher In June, Annual Growth Slows To 2.5% (11 hr(s), 21 min(s), 05 sec(s) ago)
(RTTNews) - Consumer prices in the U.S. crept up in line with economist estimates in the month of ...Full Story»

Russia Central Bank Hikes Rate By 200 Bps (11 hr(s), 34 min(s), 05 sec(s) ago)
(RTTNews) - Russia's central bank raised its benchmark rate by 200 basis points on Friday amid ...Full Story»