Turkey yearly inflation rate drops in June

(MENAFN) Türkiye’s annual inflation rate eased to 35.05% in June, slipping slightly from May’s 35.41%, and coming in under market predictions, as reported by official data.

Analysts had anticipated the inflation rate for June would reach approximately 35.2%. The latest figures indicate the smallest year-on-year increase in consumer prices since December 2021, when inflation stood at 36.08%.

The data showed that the steepest annual price increases were in the education sector at 73.33%, followed by housing at 65.54%, and health care at 38.7%.

In contrast, the sectors with the mildest price rises over the past year included clothing and footwear, which saw a 14.47% increase, communications at 18.43%, and recreation and culture at 27.53%.

According to the Turkish Statistical Institute, three major categories that carry the most weight in household spending were food and non-alcoholic beverages (30.2% annual inflation), transportation (27.72%), and housing (65.54%).

"The contributions of these main groups to the annual change were 7.60% for food and non-alcoholic beverages, 4.51% for transportation, and 9.22% for housing," it added.

On a monthly basis, consumer prices rose by 1.37% in June, compared to a 1.53% increase in May. This monthly uptick also came in below the projected rate of 1.45%.

Türkiye’s Finance Minister Mehmet Simsek commented on the results, stating that inflation had slowed in June despite the upward pressure from rising oil prices caused by ongoing geopolitical tensions.

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