Turkey posted a 17.53 percent annual hike in consumer prices in June, the country's statistical authority said on July 5.
Annual inflation rose 0.94 percentage points last month, up from 16.59 percent in May, according to the Turkish Statistical Institute (TÜİK).
Financial analysts anticipate this year's budget deficit will be 6.4 percent of GDP and the inflation rate over a 12-month time horizon, respectively June 2022 - June 2021, to be 3.75 percent, Romania's chartered financial analysts association CFA Romania said in a release. At the same time, none of the survey participants predicts a decrease in the inflation rate in the next 12 months.
Turkey will never deviate from its inflation target for the sake of short-term gains, the country's finance minister said on June 18.
"The fight against inflation is at the center of all our policies," Lütfi Elvan said at a meeting with businessmen in the northwestern province Bursa.
"What matters to us is the sustainability and inclusiveness of growth," he added.
Turkey's Central Bank on June 17 kept its one-week repo rate- also known as the policy rate- steady at 19%, in line with market expectations.
After the committee's sixth Monetary Policy Committee meeting this year, the bank said in a statement that "high levels of inflation expectations continue to pose risks to the pricing behavior and inflation outlook."
Global food prices surged in May at its fastest pace since October 2010, BBC reported. The foods rose by 39.7 % on monthly basis, a report by the UN Food and Agriculture Organisation (FAO) showed. The robust growth of prices was largely due to pandemic restrictions which disrupted deliveries in some parts of the world.
Turkey's Central Bank chief on June 2 tried to quash speculation that the bank's Monetary Policy Committee (MPC) will cut interest rates earlier than investors expect.
The new governor told investors in remarks carried by Turkish media that market expectations of an impending rate cut were groundless.