In Turkey, CPI declines to single digit after 32 years
In May, inflation in both with consumer prices and wholesale prices materialized below the expectations. According to the data released by State Institute of Statistics (DIE), May inflation rate in wholesale prices (WPI) fell by 0.03%, whereas inflation rate in consumer prices (CPI) increased by 0.38%, when compared with the figures of previous month. As a result, annual WPI figure surged to 9.56% while annual CPI declined to 8.88% for the first time after 32 years.
Due to the seasonal factors, the 2.3% decline in food prices pulled down the CPI figure in May. On the WPI side, core inflation increased by 1.8%, whereas the incredible 5.2% decline in agricultural prices has offset the negative impact of rising core inflation. The surge in core inflation is attributed to the 5.2% rise in prices of private textile and 6.6% increase in communication products' prices.
In sectoral base, the highest price increase is recorded in
manufacturing industry with 2.1% in May. In the mentioned period, the prices rose by 1.7% in mining and quarrying and by 0.6% in electric, gas and water sector while it decreased by 5.2% in agricultural, hunting, forestry and fishery sector.
The recent hike in petroleum products and depreciation of Turkish currency (TL) are expected to affect the June figures.