Türkiye’s annual inflation eases to 32.11% in June, below expectations

Consumer prices rise 0.99% month-on-month, as softer monthly energy-linked pressure helped headline inflation moderate

Türkiye’s annual consumer inflation eased to 32.11% in June, slightly below market expectations, as monthly price increases remained limited amid slower energy-linked pressure, official data showed on Friday. The consumer price index (CPI) rose 0.99% on a monthly basis, while inflation climbed 17.76% from the end of last year, according to the Turkish Statistical Institute. Economists had expected monthly inflation at 1.04%, with annual inflation projected at 32.17%, according to an Anadolu survey. The annual figure slowed from 32.61% in May, signaling a renewed moderation in headline inflation. Housing, water, electricity, gas and other fuels posted the highest annual increase among the three largest expenditure groups, rising 45.14% year-on-year, down from 45.59% in May. The group contributed 5.92 percentage points to annual inflation. Food and non-alcoholic beverages rose 35.45% annually, contributing 8.61 percentage points to the headline figure, while transportation prices increased 31.15%, adding 5.19 percentage points. On a monthly basis, housing, water, electricity, gas and other fuels rose 2.30%, contributing 0.27 percentage points to monthly inflation. Food and non-alcoholic beverages increased 0.17% month-on-month, while transportation prices edged down 0.05%, limiting upward pressure on the headline reading. Among the 174 subclasses covered by the index, prices rose in 138, fell in 26 and remained unchanged in 10. The special CPI aggregate excluding unprocessed food, energy, alcoholic beverages, tobacco and gold rose 1.66% month-on-month, and 31.18% year-on-year in June. The 12-month average inflation rate stood at 32.03%.