Inflation in Turkey Rises to 23-year High of nearly 79% in June
Turkish inflation rose year-on-year in June to a 23-year high of 78.62%, its acceleration for the 13th consecutive month boosted by the weakness of the local currency (the Turkish lira) and the negative effects of Russia's military invasion of Ukraine, which are expressed in a continued strong increase in the prices of raw materials.
Turkey's Consumer Price Index (CPI) rose in June by 4.95% compared to May, the country's official statistics show.
Compared to a year earlier, inflation in June accelerated to 78.62% from 73.5% in May.
This is the country's highest inflation since September 1998 and much higher than June 2021 (17.53%).
Graph of inflation in Turkey on an annual basis
The most drastic growth in June on an annual basis was in transport prices (a jump of as much as 123.37%) as a result of the sharp increase in energy prices against the background of the war in Ukraine, followed by that of food and soft drinks prices (by 93 .93%), on furniture and household equipment (increase by 81.14%) and on prices in hotels, cafes and restaurants (increase by 79.55%).
The weakest annual price increases in June were in communications (up 23.74%), clothing and footwear (up 26.99%), education (up 27.78%) and healthcare (up 39.34%).
Earlier in June, Turkey's central bank kept its key interest rate unchanged at 14% despite a sharp rise in prices in the country, with the bank again saying it expects inflation to start falling.
At the same time, producer prices (PPI) increased in June by 6.77% from the previous month and increased by as much as 138.11% from June 2021. This is a clear sign that consumer inflation in Turkey will continue to grow strongly in the coming months.