Inflation

Turkey’s Central Bank raised its benchmark rate more than estimates by 125 basis points to 17.75 percent on June 7, following up on last month’s dramatic increase with more tightening after inflation spiked.

Turkey's Economic Coordination Committee, under the chairmanship of Prime Minister Binali Yıldırım, has taken steps to decrease the inflation rate to single digits, Economy Minister Nihat Zeybekci said on June 6. 

The Turkish Central Bank's decision to increase the top interest rate 300 basis points to 16.5 percent has brought relief, Turkish Industry and Business Association (TÜSİAD) chair Erol Bilecik has said, warning of a high inflation rate and burden of debt.

Turkey's Central Bank sharply raised its key lending rate after markets closed on May 23 in a bid to stem an outflow of capital from the country, control inflation and support the beleaguered currency.

Britain's annual inflation rate eased in April to 2.4 percent, the lowest level since March 2017, official data showed on May 23, weighing on the pound.

The Turkish Lira extended its relentless tumble on May 21, sliding more than 2 percent against the dollar, hit by a surging greenback and concerns about the Central Bank's ability to rein in double-digit inflation.

Cyprus registered the lowest annual inflation in the European Union for April 2018, with a rate of -0.3 pct, according to Eurostat.

In March Cyprus inflation was -0.4 pct and in April 2017 it was +2.1pct.

Behind Cyprus are Ireland (-0.1 pct) and Portugal (0.3 pct), while the highest rates recorded were in Romania (4.3 pct), Slovakia (3.0 pct) and Estonia (2.9 pct).

Monthly inflation in Romania advanced to 5.2 percent in March 2018, from 5 percent the month before, on a 7.2-percent increase in prices for non-food goods, a 4-percent increase in food prices and a 2.83-percent increase in services fees.

A higher annual inflation rate was recorded in June 2013, when consumer prices rose by 5.37 percent.

Ratings agency S&P has upgraded Egypt's debt grade by one notch, citing stronger economic growth and moderating inflation.

Greece's annual EU-harmonised inflation rate accelerated in April, statistics service ELSTAT data showed on Thursday.

The reading in April was 0.5 percent from 0.2 percent in March. The data showed the headline consumer price index flat at zero percent year-on-year from -0.2 percent in the previous month.